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-   -   Cost Accounting Question Need Help (https://www.askmehelpdesk.com/showthread.php?t=801347)

  • Sep 15, 2014, 02:28 PM
    sagnik2422
    Cost Accounting Question Need Help
    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
  • Sep 15, 2014, 03:10 PM
    paraclete
    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

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