Pro Bike manufactures and sells two types of bikes: road bikes and mountain bikes The company...
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Pro Bike manufactures and sells two types of bikes: road bikes and mountain bikes The company sold 600 units of each type of bike during the year. Per unit Sales price Variable cost of goods sold Variable selling and administrative expenses Mountain bikes $ 1,000 500 60 Road bikes $ 1,400 790 50 a. Compute contribution margin (in dollars) for each product. b. Compute contribution margin ratio for each product. Which product has the better contribution margin ratio? Complete this question by entering your answers in the tabs below. Required A Required B Compute total contribution margin (in dollars) for each product. Road bikes Mountain bikes Contribution margin Pro Bike manufactures and sells two types of bikes: road bikes and mountain bikes The company sold 600 units of each type of bike during the year. Per unit Sales price Variable cost of goods sold Variable selling and administrative expenses Mountain bikes $ 1,000 500 60 Road bikes $ 1,400 790 50 a. Compute contribution margin (in dollars) for each product. b. Compute contribution margin ratio for each product. Which product has the better contribution margin ratio? Complete this question by entering your answers in the tabs below. Required A Required B Compute total contribution margin (in dollars) for each product. Road bikes Mountain bikes Contribution margin
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Part a Road Bike Mountain Bike Sales price per unit 1400 1000 LessVariable cost of goods sold per u... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
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