The accounting firm of JN Corporation has been studying the sales requirements of the Shayan Bottling Company. In the course of the study, the managing partner submits the following estimated data: SalesRs. 900,000Fixed marketing expensesRs. 71,000Direct materials206,200Variable marketing expenses80,000Direct Labor165,200Fixed administrative expenses9,500FOH171,896Variable administrative expenses4,000Variable FOH102,600 Calculate Contribution Margin Ratio for JN Corporation.

Contribution margin is calculated as excess of sales revenue over all variable expenses.

Answered: The accounting firm of JN Corporation…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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The accounting firm of JN Corporation has been studying the sales requirements of the Shayan Bottling Company. In the course of the study, the managing partner submits the following estimated data:

Sales	Rs. 900,000	Fixed marketing expenses	Rs. 71,000
Direct materials	206,200	Variable marketing expenses	80,000
Direct Labor	165,200	Fixed administrative expenses	9,500
FOH	171,896	Variable administrative expenses	4,000
Variable FOH	102,600

Calculate Contribution Margin Ratio for JN Corporation.

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