Predicting sales and variable costs using contribution margin LO C2 Bloom Company management predicts that it will incur fixed costs of $259,000 and earn pretax income of $493,100 in the next period. Its expected contribution margin ratio is 69%.
Required:
1. Compute the amount of total dollar sales.
2. Compute the amount of total variable costs.
Required 1
Compute the amount of total dollar sales.
Dollar Sales
Choose Numerator: / Choose Denominator: = Total Dollar Sales
/ = Total dollar sales
/ =
Required 2
Compute the amount of total variable costs.
Sales
Fixed costs
Pretax income
Variable costs