In a normal month,the Whitewater Company generates total sales of $25,000.To do so they incur variable costs of $15,000 and fixed costs of $10,000.
Required: 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 doll ars

Question

In a normal month,the Whitewater Company generates total sales of $25,000.To do so they incur variable costs of $15,000 and fixed costs of $10,000.
Required: 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 doll ars

Quizplus · Accepted Answer

The Answer of In a normal month,the Whitewater Company generates total sales of $25,000.To do so they incur variable costs of $15,000 and fixed costs of $10,000.
Required: 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 doll ars

In a Normal Month,the Whitewater Company Generates Total Sales of $25,000.To