rate 1d i0 tandl nd mandt ing Ove led Sasooo 0 vrable and 30

rate 1d i0% tandl .nd mandt ing Ove led Sas.ooo ?0% vrable and 30% toed. Toe managem ent har asked you to do a QP analysi, so that it can plans for the ooning year. it

Solution

Working:

Contribution margin ratio = Contribution margin/Sales = $667800/$2750000 = 24.28%

Break-even point = Total fixed expenses/Contribution margin ratio = $490900/24.28% = $2021829

1	Contribution margin	$667,800
2	Contribution margin ratio	24.28%
3	Break-even point	$2,021,829