# Compute contribution margin, break even in volume, current m

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

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