Question

The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir Company Sales $510,000 $510,000 Variable costs 306,000 255,000 Contribution margin 204,000 255,000 Fixed costs 195,840 246,840 Net income $8,160 $8,160Calculate Contribution margin ratio

Answer 1

Answer:

Results are below.

Explanation:

Giving the following information:

Blanc Company:

Sles= 510,000

Variable costs= 306,000

Noir Company

Sales= $510,000

Variable costs= 255,000

To calculate the contribution margin ratio, we need to use the following formula:

contribution margin ratio= (sales - variable cost) / sales

Blanc:

contribution margin ratio= (510,000 - 306,000)/510,000

contribution margin ratio= 0.4

Noir:

contribution margin ratio= (510,000  - 255,000) / 510,000

contribution margin ratio= 0.5