Company sells a product for $ 45 per unit. Variable costs are $ 35 per unit, and fixed costs are $ 2 comma 300 per month. The c

Question

3 years ago

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Company sells a product for $ 45 per unit. Variable costs are $ 35 per unit, and fixed costs are $ 2 comma 300 per month. The c

ompany expects to sell 560 units in September. Calculate the contribution margin per unit, in total, and as a ratio. Calculate the contribution margin per unit. Select the formula labels and then enter the amounts to compute the contribution margin per unit. Fixed costs - . ▼

Business

1 answer:

worty [1.4K] · Answer 1 · 2022-08-20T09:55:26+03:00

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The company sells a product for $ 45 per unit.

Variable costs are $ 35 per unit.

Fixed costs are $ 2300 per month.

The company expects to sell 560 units in September.

A) contribution margin per unit= selling price - variable costs

contribution margin per unit= 45 - 35= $10

B) Total contribution margin= contribution margin*units sold= 10*560= $5600

C) contribution margin ratio= contribution margin/ selling price= 10/45= 0.2222

Company sells a product for $ 45 per unit. Variable costs are $ 35 per​ unit, and fixed costs are $ 2 comma 300 per month. The c

Company sells a product for $ 45 per unit. Variable costs are $ 35 per unit, and fixed costs are $ 2 comma 300 per month. The c