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Homework answers / question archive / Della's e-Portfolio Design Service has $4,900 fixed expenses

Della's e-Portfolio Design Service has $4,900 fixed expenses

Accounting

Della's e-Portfolio Design Service has $4,900 fixed expenses. The company's operating income is $0 and the contribution margin ratio is 60%.

 

What are the company's sales in dollars using the shortcut approach to the contribution margin ratio?

A) $8,167

B) $8,192

C) $8,198

D) $8,199

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Answer:  A

Explanation:  A) $4,900 + $0 / 0.60 = 8,166.66 ~ $8,167

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