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

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.
Required:
Determine each of the following values:
a.
Variable cost ratio
b.
Contribution margin ratio
c.
Monthly break-even pound sales volume
d.
Monthly margin of safety in monetary terms

At a Monthly Volume of £25,000, a Company Incurs Variable