ABC Company estimates the following data for the coming month: total variable costs $60,000.00, income tax...

ABC Company estimates the following data for the coming month: total variable costs $60,000.00, income tax rate 30%, contribution margin percentage 60%. Find the estimated total sales for the coming month.

	a.	$100,000
	A GUESS b.	$60,000 / 40%
	c.	$60,000 / 60%
	d.	$60,000 X 60%

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Expert Solution

Particulars	%
Sales	100%
Less: Variable Cost	-40%
Contribution Margin	60%

Total sales = Total Variable Cost / % of Sales = $ 60,000 / 40%	$ 150,000

Particulars	Amount (in $ )
Sales	$ 150,000
Less: Variable Cost (40% )	($ 60,000)
Contribution Margin ( $ 90,000 / $ 150,000 = 60 % )	$ 90,000


Estimated total sales for the coming month	$ 60,000 / 40%

ekkarill92 answered 2 years ago

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