Bloom Company management predicts that It will Incur fixed costs of $255,000 and

Question

Bloom Company management predicts that It will Incur fixed costs of $255,000 and earn pretax Income of $427,500 In the next period. Its expected contribution margin ratio is 65%. Requirec 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable costs. Complete this question by entering your answers in the tabs below Required 1Required 2 Compute the amount of total dollar sales. Choose Numerator: Choose Denominator: Total Dollar Sales Total dollar sales Required 1 Required 2

Explanation / Answer

required 1:

note:fixed cost +pretax income = 255,000 +427,500

=>682,500.

required 2:

total amount of variable costs:

choose numerator / choose denominator = fixed cost plus pretax income / contribution margin ratio = total dollar sales 682,500 / 65% = 1,050,000

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