Saved Help Save & ExitS Check my w A jeans maker is designing a new line of jean

Question

Saved Help Save & ExitS Check my w A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $310 per pair and cost $207.70 per pair in variable costs to make. (Round your answers to 2 decimal places.) (1) Compute the c n margin per palr Sales 01:13:05 Less: Variable cost Contribution margin eBook Hint Print (2) Compute the contribution margin ratic Choose Choose Numerator: Contribution Margin Ratio Contribution margin per unit Selling price per uniContrbution margin ratio

Explanation / Answer

1) Calculation of contribution margin per pair: Particulars Amount Sales 310 Less: Variable cost 207.70 Contribution margin(310-207.70) 102.30 Contribution margin per pair is $102.30 2) Calculation of Contribution margin ratio Contribution margin per unit/ selling price per unit= Contribution margin ratio 102.30/310= 0.33 Contribution margin ratio is 33%

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