Assume that a firm currently has sales or revenues of $100,000, variable costs of $60,000, fixed costs of $30,000. Calculate the following: Contribution margin Contribution margin ratio Net profit Net profit ratio as percent of total sales
Using the above example, if revenues and variable expenses were to drop by 20%, what would the following be? Contribution margin Contribution margin ratio Net profit Net profit ratio as percent of total sales
Assume that the senior leaders want to know the net profit from a product that has the following sales, cost, and volume characteristics: Selling price per case $ 15 Variable expenses per case $ 9 Fixed expenses $ 40,000 Sales volume (cases) 8,000 cases Calculate the following: Total sales Total variable expenses 2 ORGL330: GWJ Contribution margin per unit Total contribution margin Contribution margin ratio Net profit (total) Net profit ratio as percent of total sales
Grafton Metal Works of McDonough produces cast bronze valves on a 20-person assembly line that operates 5 days a week, 12 hours daily. The company sold 50,000 units in 2020 at $50 per unit. The variable costs per unit were $22.50. Fixed costs totaled $750,000. Calculate the following: Total sales for 2020 Total cost for 2020 Total variable expenses Contribution margin per unit Total contribution margin Contribution margin ratio Net profit (total)