If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45, and tickets sell for $75, what is the contribution margin per unit and contribution margin ratio? a. $45 per passenger; 60% b. $30 per passenger; 60% c. $30 per passenger; 40% d. $45 per passenger; 40%

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
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If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45, and tickets sell for $75, what is the contribution margin per unit and contribution margin ratio?

a. $45 per passenger; 60%

b. $30 per passenger; 60%

c. $30 per passenger; 40%

d. $45 per passenger; 40%

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