The Gaylord Company Has Sales of $800,000,variable Costs of $400,000,and

question 45

Essay

The Gaylord Company has sales of $800,000,variable costs of $400,000,and fixed costs of $250,000.
Compute the following:
a.Contribution margin ratio
b.Break-even sales volume
c.Margin of safety ratio
d.Net income as a percentage of sales

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Definitions:

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Long-Term

Refers to assets, liabilities, or investments that are expected to be held or have an effect for a period exceeding one year.

Current

Pertaining to assets or liabilities expected to be consumed, sold, or settled within one fiscal year or the operating cycle, whichever is longer.

FASB

The Financial Accounting Standards Board, responsible for establishing and improving standards of financial accounting and reporting in the U.S.