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Edit View History Bookmarks Develop Window Help incloud.wetstudy.com Incoming WebStudy inbox (25)·lhengamy Mail (1) Personal Calendar Cost/Managerial Acc Question 1.4 4 po USE THE FOLLOWING TO ANSWER QUESTIONS 4 AND 5: Princess Ariel sells two types of beach towels, Standard and Deluxe. For the Standard towel, bud sales for the the year are $450,000, budgeted variable expenses contribution margin ratio is 20%. For the Deluxe towel, budgeted variable expenses are $20,000, and the budgeted contribution margin ratio is 60%. Princess Ariel also budgets $57,600 in company-wide fixed expenses for the year. geted are $360,000, and the budgeted sales for the year are $50,000, budgeted Princess Ariel's budgeted operating income for the year is: $120,000, $62.400 $4,800. 532.400 Question 1.5 4 points Terms of Service Privacy Sta

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Ans1 Budgeted income statement of Princess Ariel's Standard Deluxe Total Sales $ 450,000.00 $   50,000.00 $ 500,000.00 Variable cost $ (360,000.00) $ (20,000.00) $ (380,000.00) Contribution $    90,000.00 $   30,000.00 $ 120,000.00 Fixed expenses $   (57,600.00) Operating income $    62,400.00 *So the answer would be 2nd option - $62,400 Ans.2 Actual income statement of Princess Ariel's Standard Deluxe Total Sales $ 300,000.00 $ 200,000.00 $ 500,000.00 Variable cost(80% & 40%) $ (240,000.00) $ (80,000.00) $ (320,000.00) Contribution $    60,000.00 $ 120,000.00 $ 180,000.00 Fixed expenses $   (57,600.00) Operating income $ 122,400.00 *So the answer would be 4th option (i.e.$122,400) *Contribution margin is 20% & 60% given for Standard & Deluxe respectively. So the variable cost would be 80% for standard & 40% for deluxe

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