- 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)
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