In a Normal Month, the Whitewater Company Generates Total Sales

question 139

Essay

In a normal month, the Whitewater Company generates total sales of $25,000. To do so they incur variable costs of $15,000 and fixed costs of $10,000.
Required: Calculate each of the following:
A. Variable cost ratio
B. Contribution margin ratio
C. Monthly break-even point in dollar sales
D. Monthly margin of safety in dollars

---

Definitions:

Buyer Exchanges

The interactions and transactions that occur between buyers and sellers in the marketplace.

Seller

An entity or individual that offers goods or services for sale to consumers or other businesses.

Price

The amount of money required to purchase a good or service.

Liquid Refreshment

Beverages designed to provide hydration and enjoyment, including water, sodas, juices, and teas.