Given Below Are the Two Independent Situations

question 29

Essay

Given below are the two independent situations:

(a) If Henry Company's budgeted sales are $800,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio?
(b) If the contribution margin ratio is 30% for Gray Company, sales are $900,000, and fixed costs are $180,000, what is the operating profit?

---

Definitions:

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash.

Excess Cash

Funds that exceed the necessary operating and investment cash required by a business, often indicating potential for dividends, buybacks, or investments.