Solution-What is contribution margin ratio and break-even

What is contribution margin ratio and break-even point

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Reference no: EM132500170

Hoodie's Sweatshirts - You sell sweatshirts for $50 each.Your variable cost for each shirt is $35.

My Fixed Cost is $125,000.

Required:

Question 1. What is Contribution Margin?

Question 2. What is Contribution Margin Ratio?

Question 3. What is Break-even Point?

Question 4. Show in a analysis Revenues, Variable Cost, Contribution Margin, Fixed Cost and Operating Income if I sold 4,000, 6,000, 10,000, and 11,000 shirts.. Also include a column for Break-even in your analysis. The heading of the columns should be the number of sweatshirts with Revenues, VC, CM, FC and OI below for each different sales volume.

Question 5. Calculate how many shirts must sell to have a TOI (Target Operating Income) of $250,000. Prepare an analysis that checks your work.

Question 6. Calculate how many shirts must sell to have a TOI of $250,000 given a 30% tax rate. Again prepare an analysis that checks your work.

Reference no: EM132500170

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What is contribution margin ratio and break-even point : Calculate how many shirts must sell to have a TOI (Target Operating Income) of $250,000. Prepare an analysis that checks your work.

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What is contribution margin ratio and break-even point

Reference no: EM132500170

Reference no: EM132500170

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