Explore BrainMass

Explore BrainMass

    Compute contribution margin, break even in volume, current m

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Sales $450,000.00
    Cost of goods sold $200,000.00
    Gross margin $250,000.00
    Other operating expenses $196,000.00
    Operating income $54,000.00

    $50,000 of cost of goods sold and $166,000 of operating expenses is fixed.

    a. Compute contribution margin
    b. Compute the contribution-margin percentage
    c. Compute the break-even volume in sales dollars
    d. Compute the current margin of safety

    © BrainMass Inc. brainmass.com June 3, 2020, 11:16 pm ad1c9bdddf
    https://brainmass.com/business/financial-ratios/contribution-margin-break-even-volume-margin-safety-271446

    Solution Summary

    This solution is comprised of a detailed explanation to compute contribution margin.

    $2.19

    ADVERTISEMENT