E20-25 (similar to) Complete the table below for contribution margin per unit, t

Question

E20-25 (similar to)

Complete the table below for contribution margin per unit, total contribution margin, and contribution margin ratio:

DATA:

NUMBER OF UNITS: 1,140 units

SALE PRICE PER UNIT: 1,200

VARIABLE CPST PER UNIT: 900

Compute the missing information, starting with scenario A, then for scenarios B and C. (Enter the contribution margin ratio to nearest percent, X%.)

A

Number of units

1,140

units

Sale price per unit

$1,200

Variable costs per unit

900

Calculate:

Contribution margin per unit

Total contribution margin

Contribution margin ratio

%

E20-25 (similar to)

Explanation / Answer

Contribution margin per unit = Sale price per unit - Variable costs per unit = $1,200 - $900 = $300

Total contribution margin = $300 * 1,140 units = $342,000

Contribution margin ratio = Contribution margin per unit / Sale price per unit = $300 / $1,200 = $25%

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.