Bloom Company management predicts that it will incur fixed costs of $258,000 and
ID: 2513758 • Letter: B
Question
Bloom Company management predicts that it will incur fixed costs of $258,000 and earn pretax income of $476,400 in the next period. Its expected contribution margin ratio is 68%. Required: 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 Dollar Sales Choose Numerator: IChoose Denominator Total Dollar Sales = | Total dollar salesExplanation / Answer
Answer
Choose Numerator
/
Choose Denominator
=
Total Dollar Sales
Fixed Costs + Pretax Income
/
Contribution margin ratio
=
Total Dollar Sales
$734,400 [258000+476400]
/
68%
=
$1,080,000
Sales
$1,080,000
Fixed Costs
$258,000
PreTax income
$476,400
Variable cost [1080000-258000-476400]
$345,600
Choose Numerator
/
Choose Denominator
=
Total Dollar Sales
Fixed Costs + Pretax Income
/
Contribution margin ratio
=
Total Dollar Sales
$734,400 [258000+476400]
/
68%
=
$1,080,000