Answer:
1. $1,190,000
2. $583,100
Explanation:
1. Total dollar sales
First, we will get the value for contribution margin
Contribution margin - Fixed cost = Operating income
Contribution margin = Operating income + Fixed cost
Contribution margin = $337,900 + $269,000
Contribution margin = $606,900
The next step is to use contribution margin ratio to determine the sales
Contribution margin / Sales = Contribution margin ratio
606,900 / Sales = 0.51
Sales = 606,900 / 0.51
Sales = $1,190,000
2. Total variable cost
We will use the contribution margin to solve total variable cost
Sales - Variable cost = Contribution margin
$1,190,000 - Variable cost = $606,900
Variable cost = $1,190,000 - $606,900
Variable cost = $583,100
