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Problem 12 (MOS, Bobadilla) Based on the following, compute the amount of sales: Profit margin before...

Problem 12 (MOS, Bobadilla) Based on the following, compute the amount of sales:

Profit margin before tax based on sales 8%

Margin of safety ratio 20%

Fixed costs 1,200,000

Variable cost of goods sold 25%

What is the variable selling and administrative expense?

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Answer #1

Breakeven point (in sales) fixed cost Contribut Given Variable cost of goods sold - 25%. Therefore, contribution margin 75.4

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