The controller of Pelley Company prepared the following projected income The controller of Pelley…

The controller of Pelley Company prepared the following projected income The controller of Pelley…

The controller of Pelley Company prepared the following projected income
The controller of Pelley Company prepared the following projected income statement:

Sales $95,000

Total variable cost ………….68,400

Contribution margin ………$26,600

Total fixed cost …………….14,000

Operating income …………$12,600

Required:

1. Calculate the contribution margin ratio.

2. Calculate the variable cost ratio.

3. Calculate the break-even sales revenue for Pelley.

4. How could Pelley increase projected operating income without increasing the total sales revenue?

The controller of Pelley Company prepared the following projected income

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