Question

Zeke company sells 25,500 units at $17 per unit. variable costs are $10 per unit, and fixed costs are $35,200. the contribution margin ratio and the unit contribution margin, respectively, are:__________-

Answer 1

margin ratio = 0.41 unit contribution margin = 7

Step-by-step explanation:

contribution margin ratio = (revenue - variable cost)/ revenue

revenue = 25500 * 17 = 433500

total variable cost = 25500 * 10 = 255000

(433500 - 255000)/433500

178500/433500 = 0.41

unit contribution margin = (Revenue – Variable Costs) / Units Sold

= (433500 - 255000) / 25500

= 178500/ 25500

= 7