Contribution margin ratio is equal to. fixed costs divided by contribution margi

Question

Contribution margin ratio is equal to. fixed costs divided by contribution margin per unit. net sales revenue per unit minus variable costs per unit net sales revenue minus variable costs contribution margin divided by net sales revenue The Button-Down Custom Co. sells hand-sells hand-sewn shirts for $40 per shirt. It incurs monthly fixed costs of $7,000. The contribution margin ratio is calculated to be 30%. What is the variable cost per shirt? $28.00 per shirt $52.00 per shirt $40 per shirt $70.00 per shirt Lori sells hand-knit scarves at a flea market. Each scarf sells for $35. Lori pays $70 to rent a vending space for one day. The variable costs are $20 per scarf. How many scarves she sell each day in order to break even? 35 scarves 5 scarves 7 scarves 4 scarves

Explanation / Answer

     7 Question image is blurred, using best judgement for answer Contribution Margin Ratio is   D ) Contribution Margin divided by net sales revenue      8 Button down Custom Co Details Amt $/Ratio Unit Sales price                           40 Contribution Margin   30% Unit Contribution Margin                           12 Unit Variable cost =40-12=                           28 Correct Answer is option A      9 Lori Details Amt $ Unit Sales Price                           35 Unit Variable cost                           20 Unit Contribution Margin                             15 Fixed cost (Sace rent ) Per day                             70 Break even sales per day =70/15=                             5 Option B s correct

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