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lesya692 [45]
3 years ago
13

BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. If BrewCo is able to reduce its

variable cost per unit to $58, its contribution margin ratio will _____
Business
1 answer:
sineoko [7]3 years ago
5 0

Answer:

The contribution margin ratio will increase.

Explanation:

Giving the following information:

BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. BrewCo can reduce its variable cost per unit to $58.

Contribution margin ratio= (selling price - unitary variable cost)/selling price

New Contribution margin ratio= (120 - 58)/120= 0.52

Old Contribution margin ratio= (120 - 65)/120= 0.46

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Answer:

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The more likely acronym that is been referred to here which helps one analyze business communication situations is ACE, which stands for;

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A Journal entry for Brooks Incorporation on January 1, 2019 which is shown below

Explanation:

Solution

Given that:

           JOURNAL ENTRY FOR BROOKS INCORPORATION

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