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Determine the contribution margin ratio

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Question - Lauder Company had fixed costs of $282,500, variable costs of $645,000, and actual sales amounted to $1,100,000. If the company has a break-even point at $750,000 in sales revenue.

a. Determine the margin of safety expressed in dollars.

b. Determine the margin of safety expressed as a percentage of sales. Enter the percentage amount as a whole number (for example, enter 10% as "10").

c. Determine the contribution margin ratio.

d. Determine the operating income.

Reference no: EM132608102

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