At a monthly volume of $31,250, a company incurs variable cost of $23,750 and fixed costs of $7,500.
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 dollars

Question

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The Answer of At a monthly volume of $31,250, a company incurs variable cost of $23,750 and fixed costs of $7,500.
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 dollars

At a Monthly Volume of $31,250, a Company Incurs Variable