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Bezzdna [24]
1 year ago
7

last year minden company introduced a new product and sold 15,000 units of it at a price of $70 per unit. the product's variable

expenses are $40 per unit and its fixed expenses are $540,000 per year.
Business
1 answer:
Inga [223]1 year ago
5 0

A company is a legal entity formed by a group of individuals to engage in and operate a business commercial or industrial enterprise. A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.

Present Yearly Net operating income (loss)

(Units * CM Per unit)-Fixed cost

Units Sales 415000|

[Selling Price Per Unit 70

\Variabel Expense Per unit 40|

Fixed Expenses 540000]

Compute the CM ratio

Selling Price Per Unit 70.00

Variable Expense Per unit 40.00

Contribution Margin per unit ( Selling Price - Variable Cost) 30.00

Ico Ratio =( CM/Selling Price) 42.857%

Learn more about the company  here

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