Summersville Production Company had the following projected information for the current year: Selling price per unit $150 Variable cost per unit $90 Total fixed costs $300,000 What is the contribution margin ratio? a.0.600 b.2.500 c.0.400 d.1.667
Summersville Production Company had the following projected information for the current year: Selling price per unit $150 Variable cost per unit $90 Total fixed costs $300,000 What is the contribution margin ratio? a.0.600 b.2.500 c.0.400 d.1.667
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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Question
Summersville Production Company had the following projected information for the current year:
What is the contribution margin ratio?
Selling price per unit | $150 |
Variable cost per unit | $90 |
Total fixed costs | $300,000 |
What is the contribution margin ratio?
a.0.600
b.2.500
c.0.400
d.1.667
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