Reference no: EM132796008

Problem 1: If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is the contribution margin ratio?

A. 45%
B. 55%
C. 62%
D. 32%

Problem 2: Strait Co. manufactures office furniture. During the most productive month of the year, 3,000 desks were manufactured at a total cost of $59,000. In the month of lowest production the company made 1,125 desks at a cost of $38,000. Using the high-low method of cost estimation, the total fixed costs are

A. 21,000
B. 25,400
C. 42,000
D. 13,000