Lets assume Racing Bicycle Company sold 1000 bicycles in July and the fixed expenses are still $80,000.

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Let’s assume Racing Bicycle Company sold 1000 bicycles in July and the fixed expenses are still $80,000. Sales price for each bicycle is $500, and variable expense for each bicycle is still $300.

(1). How much is contribution margin?

(2). How much is the Profit?

Related Book For answer-question

Fundamentals of Cost Accounting

ISBN: 978-0077398194

3rd Edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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Posted Date: Jul 22, 2023 07:38 AM

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Lets assume Racing Bicycle Company sold 1000 bicycles in July and the fixed expenses are still $80,000.

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To calculate the contribution margin and profit we need to understand the definitions of these terms ... View the full answer

Fundamentals of Cost Accounting

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