mujer
Aug 12, 2012, 05:49 PM
here's the problem
the management of reagon corporation expects sales in January to be $ 122,000 the contribution margin ratio is 69% and its fixed monthly expenses are $ 50,000
I need to figure out
Estimate the company's net income for January assuming that fixed monthly expenses do not change
I know the formula is total sales- total variable costs-fixed costs
but I can't figure out the variable costs
the management of reagon corporation expects sales in January to be $ 122,000 the contribution margin ratio is 69% and its fixed monthly expenses are $ 50,000
I need to figure out
Estimate the company's net income for January assuming that fixed monthly expenses do not change
I know the formula is total sales- total variable costs-fixed costs
but I can't figure out the variable costs