A product has a contribution margin per unit of $12, a contribution margin ratio of 30 percent, and allocated fixed costs of $4 per unit. What is the selling price of the product? $3.60 $44 $7.60 $40 $4.80

A product has a contribution margin per unit of $12, a contribution margin ratio of 30 percent, and allocated fixed costs of $4 per unit. What is the selling price of the product? $3.60 $44 $7.60 $40 $4.80

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 8EB: Suppose that a company has fixed costs of $11 per unit and variable costs $6 per unit when 11,000...

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Question

A product has a contribution margin per unit of $12, a contribution margin ratio of 30 percent, and allocated fixed costs of $4 per unit. What is the selling price of the product?

$3.60
$44
$7.60
$40
$4.80

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