Answer:
During the initiation phase, what does project selection help to do?
The initiation phase entails the starting point of the project, project selection comes in after the scope, objectives and how it would be delivered has been defined thoroughly. Project selection helps to make decision to know when the project would be ready for delivery, also the format of execution would be known, furthermore, any deviation from the initiation would be detected early and corrected if there is any
Explanation:
Contribution is the difference between the Sales per unit and the variable cost per unit. When the selling price reduced to $6 per unit,
Contribution per unit = Sales per unit - Variable Cost per unit
Contribution per unit = $6 - ($6*0.6)
Contribution per unit = $2.4 per unit.
Now, the contribution margin ratio = Contribution per unit / Sales per unit
Contribution Margin Ratio = $2.4 / $6
Contribution Margin Ratio = 0.4 or 40%
Contribution Margin ratio when the sales price is $6 per unit is 40%.
