Question: Exercise 18-7 (Static) Contribution margin LO A1 A jeans maker is designing a new line of jeans called Slams. Slams will sell for $205 per

Exercise 18-7 (Static) Contribution margin LO A1 A jeans maker is designing a new line of jeans called Slams. Slams will sell for $205 per unit and cost $164 per unit in variable costs to make. Fixed costs total $60,000. X Answer is not complete. 1. Compute the contribution margin per unit. Sales $ 205 per unit Variable cost 164 per unit Contribution margin 41 per unit 2. Compute the contribution margin ratio. Numerator: Denominator: Contribution Margin Ratio Contribution margin per unit 1 Selling price per unit V = Contribution margin ratio 41 1 $ 205 20.0% 3. Compute income if 5,000 units are produced and sold. Income 60,000 X

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