At a monthly volume of $25,000,a company incurs variable cost of $19,000 and fixed costs of $6,000.
Determine each of the following values:
a.Variable cost ratio
b.Contribution margin ratio
c.Monthly break-even dollar sales volume
d.Monthly margin of safety in dollars

Question

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The Answer of At a monthly volume of $25,000,a company incurs variable cost of $19,000 and fixed costs of $6,000.
Determine each of the following values:
a.Variable cost ratio
b.Contribution margin ratio
c.Monthly break-even dollar sales volume
d.Monthly margin of safety in dollars

At a Monthly Volume of $25,000,a Company Incurs Variable Cost