Exam B 1000 Points Red Hawk [ × ls Relevant inx com/ tpx Red Hawk Enterprises se

Question

Exam B 1000 Points Red Hawk [ × ls Relevant inx com/ tpx Red Hawk Enterprises sels handmade clocks. Its variable cost per clock is $6.20, and each clock sels for $16.00. Calculate Red Hawk's unit contribution margin. Unit Contribution Margin Calculate Red Hawk's contribution margin ratio. (Round your contribution margin percentage ratio to one decimal places ( Contribution Margin Ratio Suppose Red Hawk sells 1,700 clocks this year. Calculate th e total contribution margin. (Round contribution margin per unit t Total Contribution Margin 0 0 Type here to search

Explanation / Answer

Selling Price Per Unit -Variable Cost Per Unit =Contribution Margin Per Unit 16-6.2 = $9.8 Contribution Margin Per Unit/Selling Price Per Unit=Contribution Margin Ratio 9.8/16= 61.3% Sales units*Contribution Margin Per Unit = Total Contribution Margin 1700*9.8= $16660

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