Andrew Ltd developed the following income statement using a contributionmargin approach: Sales (100,000 units) $ 750,000 Less:

Andrew Ltd developed the following income statement using a contributionmargin approach:

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Sales (100,000 units) $ 750,000 Less: variable costs Variable manufacturing costs 280,000 Variable selling costs 120,000 Total variable costs 400,000 350,000 Less: Fixed costs Fixed manufacturing costs 130,000 Fixed selling and administrative costs 80,000 Total fixed costs 210,000 Net operating income 140,000 Sales (100,000 units) $ 750,000 Less: variable costs Variable manufacturing costs 280,000 Variable selling costs 120,000 Total variable costs 400,000 350,000 Less: Fixed costs Fixed manufacturing costs 130,000 Fixed selling and administrative costs 80,000 Total fixed costs 210,000 Net operating income 140,000

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Answer To calculate the contribution margin per unit and the contribution margin ratio we first need ... View the full answer