I need help with the blanksSolutionb Contribution margin for

I need help with the blanks

Solution

(b) Contribution margin for alternative 1: $1353300/$3175050 = 43%

Contribution margin for alternative 2: $624600/$2602500 = 24%

Break-even point for alternative 1: $884850/43% = $2057791

Break-even point for alternative 2: $791160/24% = $3296500

Alternative 1 is recommended.

Working:

Alternative 1 Alternative 2
Sales 3175050 2602500
Variable expenses 1821750 1977900 [$1821750 + (6% x $2602500)]
Contribution margin 1353300 624600
Fixed expenses 884850 791160 [$884850 - $156150 + $62460]
I need help with the blanksSolution(b) Contribution margin for alternative 1: $1353300/$3175050 = 43% Contribution margin for alternative 2: $624600/$2602500 =

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