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Q: What is variable cost and contribution margin if Sales is 25000000 fixed cost is 12000000 net operating income is 5000000?
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Are variable costs included in operating costs?

Variable operating costs + fixed operating costs = total operating costs.


How do you calculate the Contribution margin ratio?

sales-variable cost= contribution


Does contribution margin equal Sales-variable costs?

Contribution margin is computed as sales revenue minus variable expenses


Does increasing the variable cost increase the contribution margin?

Increase in variable cost reduces the contribution margin as following formula suggests”Contribution margin = Sales revenue – Variable Cost


How do you calculate unit contribution margin?

sales-variable coste= contribution margin


How do you calculate the Actual Contribution Margin?

contribution margin = sales - variable cost


What is contribution margin ratio?

contribution margin ratio = (sales - variable costs) / Sales


Does contribution margin equals revenue minus all variable costs?

Yes, Revenues minus variable costs gives you your contribution margin. Contribution margin minus fixed costs gives you net income.


If your revenue is 10 million your variable cost is 6 million your fixed cost is 3 million what is your contribution margin?

Contribution margin = Sales revenue - variable cost Contribution margin = 10 million - 6 million Contribution margin = 4 million


How do you calculate contribution?

Formula for contribution is as follows: Sales revenue xxxx Less: Variable cost xxxx Contribution margin xxxx


How do you calculate total variable expenses in a contribution income statement?

Total variable cost is typically the sum of all variable labor, variable materials, and variable overhead expenses.


How do you compute total fixed cost assuming a break even in dollars is nine hundred thousand dollar and variable cost is 630000 income tax is forty percent and contribution margin ratio is thirty per?

A contribution margin of 30% translates to Sales of $900,000 (sales-variable cost)/sales=contribution margin ratio. Since this sales level is also the break even point, there is no operating profit. Thus, a 40% tax rate is immaterial and total fixed cost equals sales minus variable cost or $270,000.