John Wilson, a sole proprietor, has the following projected figures for next year: Selling price per unit
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Question:
John Wilson, a sole proprietor, has the following projected figures for next year:
Selling price per unit | $ 200.00 |
Contribution margin per unit | 50.00 |
Total fixed costs | 700,000 |
What is the contribution margin ratio? (Note: Round answer to three decimal places.)
a.1.429
b.0.429
c.3.333
d.0.250
e.0.700
The income statement for Elite Manufacturing Company for the current year is as follows:
Sales (15,000 units) | $180,000 |
Variable expenses | 100,000 |
Contribution margin | $ 80,000 |
Fixed expenses | 60,000 |
Operating income | $ 20,000 |
What is the contribution margin per unit? (Note: Round answer to two decimal places.)
a.$7.20
b.$1.20
c.$6.56
d.$5.33
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
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