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View Full Version : Cost Accounting Question Need Help


sagnik2422
Sep 15, 2014, 02:28 PM
Assume that more than one product is being sold in the following situation:

Sales = $456,000
Variable Expenses = ?
Fixed Expenses = ?
Net Operating Income (loss) = $86,080
Contribution Margin ratio (percent) = 43%

Required : Find Missing Amounts

I really want to get how to solve so please show steps :)

My work: I tried doing the contribution format income statement but to no avail because variable and fixed were missing and I know CM ratio = UCM/ USP but this didn't really help

paraclete
Sep 15, 2014, 03:10 PM
sales - variable expenses = contribution margin - fixed expenses = net operating income sales x contribution margin ratio 43% = contribution margin from this information you can calculate by plugging in the figures