Accounting

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a. Bryan Company budgets sales of $1,800,000, fixed costs of $1,000,000, and variable costs of $1,080,000. What is the contribution margin ratio for Bryan Company? (Enter your answer as a whole number.)
%

b. If the contribution margin ratio for Carnegie Company is 32%, sales were $900,000, and fixed costs were $210,000, what was the income from operations?
$

  • Accounting -

    a)
    Sales =$ 1,800,000
    Variable costs = 1,080,000
    Contribution margin = $720,000
    contribution margin ratio = 720000/1800000 = 40%

    b) sales = $900,000
    contribution margin ratio 32%
    contribution margin = 288000
    less fixed cost = 210000
    Income from operation = $7800

  • Accounting -

    Income from operation $78,000

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