Question

Compute the contribution margin ratio and fixed costs using the following data.

Sales 8.4,100
Variable costs $ 2.829
Income $ 590
Contribution Margin
Contribution margin Ratio
Numerator/Denominator=Contribution Margin Ratio
______ / ______=Contribution margin ratio
Fixed Cost

Answer 1

The contribution margin ratio is 66%, but the fixed costs cannot be calculated with the given information.

Step-by-step explanation:

The contribution margin ratio is calculated by dividing the contribution margin by sales. To find the contribution margin, we subtract the variable costs from the sales. In this case, the sales are $8,4100 and the variable costs are $2,829, so the contribution margin is $5,58100. The contribution margin ratio is then found by dividing the contribution margin by sales: $5,58100 / $8,4100 = 0.66 or 66%.

Fixed costs are the costs that do not change regardless of the level of production. In this case, the fixed costs are not given, so we cannot calculate them with the information provided.