The total sales revenue of Black Stone Crushing Company was $150,000 for the last year. The fixed and variable expenses data of the last year is given below: Variable expenses: Manufacturing: $60,000 Marketing and administrative: $30,000 Fixed: Manufacturing: $10,000 Marketing and administrative: $8,000 Required: Calculate contribution margin ratio and also express it in percentage form.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
The total sales revenue of Black Stone Crushing Company was $150,000 for the last year. The fixed and variable expenses data of the last year is given below:
Variable expenses:
Manufacturing: $60,000
Marketing and administrative: $30,000
Fixed:
Manufacturing: $10,000
Marketing and administrative: $8,000
Required: Calculate contribution margin ratio and also express it in percentage form.
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