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21 January, 07:55

For franklin, inc., sales is $1,500,000, fixed expenses are $450,000, and the contribution margin ratio is 36%. what are the total variable expenses?

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  1. 21 January, 10:47
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    The answer is " $960,000".

    This is how we calculate this;

    sales = $1,500,000

    fixed expenses = $450,000

    contribution margin ratio = 36% = 36/100 = 0.36

    total variable expenses = ($1,500,000) (1 - 0.36)

    = (1,500,000) (0.64)

    = $960,000
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