Respuesta :
Answer:
a. 30%
b. $335,000
Explanation:
a. The computation of the contribution margin ratio is shown below:
Contribution margin ratio = (Contribution margin) ÷ (Sales) × 100
where,
Contribution margin = Sales - Variable cost
= $3,200,000 - $2,240,000
= $960,000
And, the sales is $3,200,000
Now put these values to the above formula
So, the value would equal to
So, the Contribution margin ratio = ( $960,000) ÷ ($3,200,000 ) × 100 = 30%
b. The computation of the income from operations is shown below:
= Contribution margin - fixed cost
= $2,100,000 × 35% - $400,000
= $735,000 - $400,000
= $335,000
The contribution margin ratio is 30% and the income from operations is 335,000.
What are the contribution margin and income from operations?
a. The contribution margin ratio is calculated as follows:
[tex]\text{Contribution margin ratio} = \frac{(\text{Contribution margin})}{(\text{sales})} \text{ x } 100[/tex]
where,
[tex]\text{Contribution margin = Sales - Variable cost}[/tex]
[tex]= 3,200,000 - 2,240,000\\\\= 960,000\\\\\text{And, the sales is} 3,200,000\\\text{Now put these values to the above formula}\\[/tex]
[tex]\text{So the Contribution margin ratio}= \frac{960,000}{3,200,000} {\text{ x }100} = 30[/tex]
b. The income from operations is calculated as follows:
[tex]= \text{Contribution margin - fixed cost}\\= 2,100,000 \text{ x } 0.35 - 400,000\\= $735,000 - $400,000\\= $335,000[/tex]
For more information about contribution margin, refer below
https://brainly.com/question/14014917
