Question

Kelchner Corporation has provided the following contribution format income statement: Assume that the following information is within the relevant range: Sales (3,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $180,000 $108,000 $72,000 $62,400 $9,600 What is the contribution margin ratio for Kelchner Corporation?

Name: kelchner corporation has provided the following contribution format income statement assume that the following information is within the relevant range sales 3000 units varable expenses con 66313
Uploaded: 2022-03-29T11:05:31-08:00
Duration: 2 min 4 s
Channel: Aya Bianca Into
Description: kelchner corporation has provided the following contribution format income statement assume that the following information is within the relevant range sales 3000 units varable expenses con 66313

          Kelchner Corporation has provided the following contribution format income statement: Assume that the following information is within the relevant range:
Sales (3,000 units) Variable expenses Contribution margin Fixed expenses Net operating income
$180,000 $108,000 $72,000 $62,400 $9,600

What is the contribution margin ratio for Kelchner Corporation?

Added by Alexandra P.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Aya Bianca Into

03/29/2022

Step 1

In this case, the contribution margin is $72,000 and the sales are $180,000. So, the contribution margin ratio is $72,000 / $180,000 = 0.4 or 40%. Show more…

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Kelchner Corporation has provided the following contribution format income statement: Assume that the following information is within the relevant range: Sales (3,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $180,000 $108,000 $72,000 $62,400 $9,600 What is the contribution margin ratio for Kelchner Corporation?