If the contribution margin ratio is 0.40, targeted operating income is $70,000, and targeted sales volume...
If the contribution margin ratio is 0.40, targeted operating income is $70,000, and targeted sales volume in dollars is $ $250,000, then total fixed costs are ________
Homework Answers
Total fixed costs are $ 30,000
Explanation
Contribution margin = Targeted sales x Contribution margin ratio
= $250,000 x 0.40
= $100,000
Total fixed costs = Contribution margin - Targeted operating income
= $100,000 - $70,000
= $30,000
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