EXERCISE 4-2. Contribution per Unit and Contribution Margin Ratio. Consider two companies, Oakland Hill Golf Course and Brooks Mens Clothing.

Required Which company is more likely to focus on the contribution margin per unit, and which is more likely to focus on the contribution margin ratio in cost-volume-profit analysis? Explain. (Note: A unit at the Oakland Hills Golf Course is a round of golf. A unit at Brooks Mens Clothing is an article of apparel.)