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4 July, 18:41

Use the contribution margin ratio to project operating income (or loss) if revenues are $ 520.000 and if they are $ 1.040.000. First, select the labels to calculate projected operating income. Then, calculate projected income (or loss) if revenues are $ 520.000. Finally, calculate projected income (or loss) if revenues are $ 1.040.000. (Enter the contribution margin ratio as a whole percent. Enter losses with a minus sign or parentheses.)

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  1. 4 July, 18:52
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    Instructions are listed below.

    Explanation:

    Giving the following information:

    Use the contribution margin ratio to project operating income (or loss) if revenues are $ 520.000 and if they are $ 1.040.000.

    We weren't provided with the contribution margin ratio. But, I will give the contribution margin formula and an example to guide an answer.

    Contribution margin ratio = (selling price - unitary varaible cost) / selling price

    For example:

    Contribution margin ratio = 0.35

    Operating income = sales*contribution margin ratio

    Operating income = 520,000*0.35 = $182,000

    Operating income = 1,040,000*0.35 = $364,000
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