Ask Question
8 February, 11:05

Nolan Dry Cleaners has determined the following about its costs: Total variable expenses are $40,000 , total fixed expenses are $30,000, and the sales revenue needed to break even is $40,000. Determine the company's current 1) sales revenue and 2) operating income. ( Hint: First, find the contribution margin ratio; then prepare the contribution margin income statement.)

+1
Answers (1)
  1. 8 February, 12:12
    0
    Operating income = 40,000

    Explanation:

    Giving the following information:

    Total variable expenses are $40,000 , total fixed expenses are $30,000, and the sales revenue needed to break even is $40,000.

    Sales = operating income + fixed costs + variable costs

    Sales = 40,000 + 30,000 + 40,000 = 110,000

    Operating income:

    Sales = 110,000

    Variable costs = 40,000

    Gross profit = 70,000

    Fixed costs = 30,000

    Operating income = 40,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Nolan Dry Cleaners has determined the following about its costs: Total variable expenses are $40,000 , total fixed expenses are $30,000, ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers