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    sagnik2422's Avatar
    sagnik2422 Posts: 77, Reputation: 1
    Junior Member
    		  
    #1

    Sep 15, 2014, 02:28 PM
    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
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
    		  
    #2

    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
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