Commecial Residential Total Number of Customers 200 600 800 Service Revenue $ 32,000 $72,000 $ 104,000 Variable Costs 8320 27,360 35,680 Contribution Margin 23,680 44,640 68,320 Fixed Costs 53,000 Operating Income $ 15,320

Compute and Discuss the following financial ratios: -Gross Profit Margin (Gross Profit / Sales) -Net Profit Margin (Net Income / Sales) The transactions for the Year ending December 31 for The Fitness Center were as follows: The company had Cash Sales of $750,000 for Membership Fees for the fitness center. The company had Cash Sales of $400,000 for Personal Trainer Fees for the fitness center. The company had Cash Sales of $850,000 for Equipment Sales for the distribution center. The Cost of Goods Sold from the Equipment Inventory for the Equipment Sales was $300,000 for the distribution center. The company purchased Equipment Inventory on credit (Accounts Payable) in the amount of $500,000 for the distribution center. The company paid $2,500 Cash for Towel Laundry Expense for the fitness center. The company paid $250,000 Cash for the CEO Wage Expense. The company paid $1,500 Cash for Advertising Expense for the fitness center. The company paid $100,000 Cash for the Sales Salaries…

Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,000 Cost of goods sold 51,900 Gross profit $ 8, 100 Operating expenses 15,200 Operating loss $ (7,100) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: Rearrange the preceding income statement to the contribution margin format. If sales increase by 10%, what will be the firm's operating income (or loss)? Calculate the amount of revenue required for Big Sky to break even.

Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 20,000 T-shirts at $19 each in the coming year. Product costs include: Direct materials per T-shirt $6.65 $1.33 Direct labor per T-shirt Variable overhead per T-shirt $0.57 Total fixed factory overhead $43,000 Variable selling expense is the redemption of a coupon, which averages $0.95 per T-shirt; fixed selling and administrative expenses total $13,000.