Answers
1. Overall Contribution Margin of the Company = Total Contribution Margin / total Sales = 127200/159000 80% 2. Overall Break Even poin in dollar Sales = Fixed Cost / CM Ratio = 92640/80% 115800 Contribution Margin income Statement at the Companies Break Even point ClaimJumpers Make over Totals Sales 77200 38600 115800 1925613904 Varaibles Expense 23160 contribution Margin 57944 34696 92640 Fixed Expense 92640 Net operating Margin Sales MixRatio=Division Sales / Total sales Variable Cost ratio Sales = Total Sales* Sales mix Ratio Variable cost = sales *VC Ratio ClaimJumpers Make over 0.6666666671 0.33333333 0.249433962 0.10113208 77200 38600 19256.30189 3903.69811
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