Question: Both Samsung and Apple sell smartphones. Assume the following data are available for a popular smart phone model of each company. Required 1. Compute the

Both Samsung and Apple sell smartphones. Assume the following data are available for a popular smart phone model of each company.

Samsung Apple Selling price per unit. Variable cost per unit... $720 $650 221 288


Required

1. Compute the contribution margin ratio for each model.

2. Based on contribution margin ratio, which company’s smartphone sales contribute more to covering fixed costs?

Samsung Apple Selling price per unit. Variable cost per unit... $720 $650 221 288

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