What is the contribution ratio

Reference no: EM13716611

Compute the answer of the given problems

Problem 1- You have total fixed costs of $54,000 and sold 350 units at $140/unit. Your total variable costs were $35,000.

Part 1- What is your net income/loss.

Problem 2- You're currently producing with fixed costs of $34,000 at a tax rate of 25% and a contribution ratio of 45%.

Part 1- How much revenue must be generated for you to achieve an after-tax profit of $36,000?

Problem 3-

Problem 4- If a company's margin of safety is 35% on sales of $200,000 what will its margin of safety (in dollars) be on sales of $300,000 given that all else remains the same?

I need help to find the contribution ratio.

Reference no: EM13716611

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