Explore BrainMass

# Calculating sales for the Honeyville Company

Not what you're looking for? Search our solutions OR ask your own Custom question.

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

#8
The contribution margin ratio is 30% for the Honeyville Company and the break-even point in sales is \$150,000. If the company's target net operating income is \$60,000, sales would have to be:

a \$200,000
b \$350,000
c \$250,000
d \$210,000

However, last year, honeyville Company's break-even point in sales was \$900,000, and its variable expenses were 75% of sales. If the company lost \$32,000 last year, sales must have amounted to

a \$868,000
b \$804,000
c \$772,000
d \$628,000

#### Solution Preview

8.1)
Fixed cost =Sales * (contribution margin ratio)=150K * 30% = 45 K
now that the income is 60,000
Total contribution margin should be = income + ...

#### Solution Summary

You will find the answer to this puzzling question inside...

\$2.49