Explain what is the contribution ratio, Operation Management

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Foster Company makes power tools. The budgeted sales are $420,000, budgeted variable costs are $147,000, and budgeted fixed costs are $227,500.

What is the budgeted operating income

What is the variable cost ratio What is the breakeven point in sales dollar?

What is the contribution margin.

What is the contribution ratio?

Answer

35%

65%

54%

89%

50%

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