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Leokris [45]
3 years ago
12

Rachel’s Candelabra Shoppe sells candles to clients for $6.00 each. The variable cost to produce each candle is $2.25 per candle

. The fixed costs are $2,800 per month. What is the firm’s contribution margin per candle
Business
1 answer:
Flauer [41]3 years ago
7 0

Answer:

The firm’s contribution margin per candle is $3.75

Explanation:

The computation of the firm’s contribution margin per candle is shown below:

Contribution margin per unit = Selling price per unit - variable cost per unit

= $6 candle - $2,25 candle

= $3.75 candle

The fixed expense is used to compute the break-even sales in units and in dollars so for this calculation, the fixed expense should not be taken. Hence, ignored it

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Generally accepted accounting principles (GAAP) requires the expenses incurred to generate revenues be matched in the same perio
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The statement is: True.

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A.

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5 0
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