Given Below Are the Two Independent Situations:
(A) If $\$ 800,000$

question 17

Essay

Given below are the two independent situations:
(a) If Herry Company's budgeted sales are $\$ 800,000$ , fixed costs are $\$ 350,000$ , and variable costs are $\$ 600,000$ , what is the budgeted contitibution 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?

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Definitions:

Positive Economics

The branch of economics that focuses on factual and cause-and-effect relationships, avoiding value judgments about what ought to be.

Prescriptions

Authorized orders for medication given by a licensed healthcare professional, allowing a patient to be provided medicine.

Factor Of Production

Resources used in the creation of goods and services, traditionally categorized into land, labor, capital, and sometimes entrepreneurship.

Fertilizer

A chemical or natural substance added to soil or land to increase its fertility and enhance plant growth.