Cost Behavior and Cost-Volume-Profit AnalysisWarren / Reeve / DuchacExercise 19-9 solution |
a. Bert Company budgets sales of $1,250,000, fixed costs of $450,000, and variable costs of $200,000. What is the contribution margin ratio for Bert Company?
Answer: 84%
b. If the contribution margin ratio for Ernie Company is 40%, sales were $750,000, and fixed costs were $225,000, what was the income from operations?
Answer: $75,000
