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What was the margin of safety for Abraham last year

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Problem - Abraham Company had revenues of $830,000 last year with total variable costs of $647,400 and fixed costs of $110,000.

Required -

What is the variable cost ratio for Abraham? What is the contribution margin ratio?

What is the break-even point in sales revenue?

What was the margin of safety for Abraham last year?

Abraham is considering starting a multimedia advertising campaign that is supposed to increase sales by $12,000 per year. The campaign will cost $4,500. Is the advertising campaign a good idea? Explain.

Reference no: EM132700287

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