Scott Power produces batteries. Scott has determined its contribution margin to be $2 per battery and its

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Scott Power produces batteries. Scott has determined its contribution margin to be $2 per battery and its contribution margin ratio to be 0.5. What is the effect on profits of the sale of one additional battery? Of one additional dollar of sales?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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