Carol Ann\'s Shoe Store Income Statement For the Month Ended April 30, 200X Sale
ID: 2499069 • Letter: C
Question
Carol Ann's Shoe Store Income Statement For the Month Ended April 30, 200X Sales $68,000 Less: Variable Costs - Cost of Goods Sold $40,000 Selling Expense 4,600 Administrative Expense 3,000 Total Variable Costs (47,600) Contribution Margin 20,400 Less: Fixed Costs - Selling Expense $ 5,900 Administrative Expense 9,000 Total Fixed Costs (14,900) Operating Income $ 5,500 During the month of April, Carol Ann sold 5,000 pairs of shoes. Refer to the information above for Carol Ann's Shoe Store. The contribution margin ratio is
Explanation / Answer
Break even sales= Fixed cost / Contribution margin percentage(contribution/sales)
= 14,900/ (20,400/68000)
=14,900/ 30%
=$49,666.67 (Sales value)