Question

produces sports socks. The company has fixed expenses of $ 75 comma 000$75,000 and variable expenses of $ 0.75$0.75 per package. Each package sells for $ 1.50$1.50. Read the requirementsLOADING.... Requirement 1. Compute the contribution margin per package and the contribution margin ratio. Begin by identifying the formula to compute the contribution margin per package. Then compute the contribution margin per package. ​(Enter the amount to the nearest​ cent.) – = Contribution margin per unit

Answer 1

Results are below.

Step-by-step explanation:

Giving the following information:

Selling price= $1.5

Unitary variable cost= $0.75

First, we need to calculate the unitary contribution margin:

Contribution margin= selling price - unitary variable cost

Contribution margin= 1.5 - 0.75

Contribution margin= $0.75

Now, we can calculate the contribution margin ratio:

contribution margin ratio= contribution margin/selling price

contribution margin ratio= 0.75/1.5

contribution margin ratio= 0.5