Moving to another question wil save this response uestion 11 Question 11 of 12 F

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Moving to another question wil save this response uestion 11 Question 11 of 12 Forrester Company is considering buying new equipment that would increase monthly foxed costs from $120,000 to $150,000 and would decrease the current variable costs of S7O by $10 per unt The selting price of $100 is not expected to change Forresters current break even sales are $400,000 and current break even unts ane 4,000 If Forrester parchases this new equipment, the revised contrbuton margn ratio would be @ 30% @ 60% @40% 1 pointsSave Answe 10% 70%

Explanation / Answer

Selling Price    =   $100

New Variable cost per unit = $60

New Contribution margin = $100 - $60 = $40

Contribution margin ratio = 40 / 100   = 40% Answer

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