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opfaluyi opfaluyi
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A week ago
Bumper earned net income of $72,000 and has fixed costs of $36,000. Bumper sold 11,000 units for $30 each and has a 40% contribution margin ratio. What were Bumper's operating income and tax rate?

▸ $120,000; 40%

▸ $96,000; 25%

▸ $162,000; 45%

▸ $270,000; 27%
Textbook 

Managerial Accounting


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amieamie
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A week ago
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$96,000; 25%

CM = $30 × 0.40 = $12.00; (11,000 × $12.00) - $36,000 = $96,000 operating income
$96,000 ÷ (1 - Tax rate) = $72,000; Tax rate = 25%
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