Solen Corporation's break-even-point in sales is $860,000, and its variable expenses are 70% of sales. If the company lost $36,000 last year, sales must have amounted to:
The contribution margin is a formula and is used by finance managers to make decisions, and it is used in determining the break-even point of sales volume and sales revenues, used in the differential analysis, CVP analysis
Answer and Explanation: 1
Provided with the following data
- The break-even sales is $860,000
- The variable cost is 70% of sales or $602,000
Contribution margin ratio = 1 -...
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fromChapter 22 / Lesson 20
Understand what the contribution margin is. Learn the definition of contribution margin and understand its importance in business. Discover how to calculate it through examples.