If the contribution margin ratio is 32%, target operating income is $60,000, and the sales revenue needed to achieve the target operating income is $400,000, what are total fixed expenses?

Question

Quizplus · Accepted Answer

Contribution Margin = Sales Revenue * Contribution Margin Ratio$400,000 * 32% = $128,000Target Operating Income = Contribution Margin - Total Fixed Expenses$60,000 = $128,000 - Total Fixed ExpensesTotal Fixed Expenses = $128,000 - $60,000 = $68,000

If the Contribution Margin Ratio Is 32%, Target Operating Income