The program director determines that his program has revenue for the year of $1,
ID: 2783726 • Letter: T
Question
The program director determines that his program has revenue for the year of $1,210,000. He believes his variable expenses amt to $205,000 and he knows his fixed expenses amt $1,100,00. A, compute the contribution margin for the program. B. The profit-volume (PV) ratio is also known as the contribution margin (Cm) ratio. Compute the PV RATIO. The program director determines that his program has revenue for the year of $1,210,000. He believes his variable expenses amt to $205,000 and he knows his fixed expenses amt $1,100,00. A, compute the contribution margin for the program. B. The profit-volume (PV) ratio is also known as the contribution margin (Cm) ratio. Compute the PV RATIO. A, compute the contribution margin for the program. B. The profit-volume (PV) ratio is also known as the contribution margin (Cm) ratio. Compute the PV RATIO.Explanation / Answer
A. Contribution margin = Revenue - Variable cost
= $1210000 - $ $205000
= $ 1005000
B. PV ratio = Contribution margin / Revenue * 100
= $1005000 / $1210000
= 83.06%
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