Homework Answers
A1) Contribution margin ratio=( Sales - varibale)× 100/Sales
= ( 43 - 17.63) × 100/43
= 59%
Variable cost = 41% of sales
So 43×41%= 17.63
A2) breakeven sales = fixed cost/ contribution margin ratio
= 118,000×12/59%
= $24,00,000
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