Question

Use the contribution margin ratio to project operating income​ (or loss) if revenues are $ 520.000 and if they are $ 1.040.000. ​First, select the labels to calculate projected operating income.​ Then, calculate projected income​ (or loss) if revenues are $ 520.000. ​Finally, calculate projected income​ (or loss) if revenues are $ 1.040.000. ​(Enter the contribution margin ratio as a whole percent. Enter losses with a minus sign or​ parentheses.)

Answer 1

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Use the contribution margin ratio to project operating income​ (or loss) if revenues are $ 520.000 and if they are $ 1.040.000. ​

We weren't provided with the contribution margin ratio. But, I will give the contribution margin formula and an example to guide an answer.

Contribution margin ratio= (selling price - unitary varaible cost)/ selling price

For example:

Contribution margin ratio= 0.35

Operating income= sales*contribution margin ratio

Operating income= 520,000*0.35= $182,000

Operating income= 1,040,000*0.35= $364,000