Purchase Solution

How do you calculate the contribution margin ratio for Darth Company?

Not what you're looking for?

Ask Custom Question

Darth Company sells three products. Sales and contribution margin ratios for the three products follow:

Product
X Y Z
Sales in dollars 16,200 44,600 99,450
Contribution Margin Ratio 48% 39% 15%

Given these data, the contribution margin ratio for the company as a whole would be?

Purchase this Solution
Solution Summary

The solution explains how to determine the contribution margin ratio with calculations and the answer.

Purchase this Solution
Free BrainMass Quizzes
Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

View More Free Quizzes
Related BrainMass Solutions

  • Morrison Company

    Dollar amount of sales needed = (Fixed cost+ desired pretax income)/contribution margin ratio = (630,000+120,000)/0.6 = $1,250,000 The solution explains how to calculate the contribution margin, breakeven and net income for Morrison Company

  • Simon Hinson Co: Assess company net income for changes in Go

    Calculate the segment margin ratios before and after these changes and comment on the results. Explain the changes. C. How do the sales increases and decreases impact divisional contribution margin ratio and segment margin ratio?

  • How to calculate Beak-Even in Units and Dollars

    the firm's break-even in dollars, the formula you would use is: Break-Even (Dollars) = Total Fixed Costs / Contribution Margin Ratio (Note, the difference is, it is the ratio that is used), Where Contribution Margin Ratio is given by: Contribution

  • Contribution margin ratio and break-even point

    : (a) Calculate the contribution margin ratio.

  • Unit Contribution Margin for a tile manufacturer

    Calculate the company's unit contribution margin b. Calculate the company's unit contribution ratio c. If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be? a.

  • Net Income

    Income 2) Calculate the Contribution Margin per unit 3) Calculate the Contribution Margin Ratio 4) If the Walton Company sells 500 more additional units, by what amount will net income increase?

  • CVP Analysis

    Please refer attached file for better clarity of tables and formulas. A)Calculate the contribution margin ratio each product.

  • Breakeven /target income

    Breakeven even revenues = Fixed cost/contribution margin ratio When there are two products we calculate the weighted average contribution margin ratio Weighted average contribution margin ratio = 0.63 X 20% + 0.37 X 60% = 34.8% Breakeven sales = 15,890,700

  • Income statement question

    Calculate the amount of revenue required for Pace to break even. a. Rearrange the preceding income statement to the contribution margin format. The contribution margin ratio is 30%. This means that the variable costs are 70% of the sales.

View More Related Solutions