Question

Determine the missing amounts. (Round answers to 0 decimal places, e.g. 1,225.) Unit Selling Price Unit Variable Costs Unit Contribution Margin Contribution Margin Ratio 1. $570 $420 $Entry field with correct answer 150 (a) Entry field with correct answer 26 % (b) 2. $490 $Entry field with correct answer 360 (c) $130 Entry field with correct answer 27 % (d) 3. $Entry field with incorrect answer now contains modified data 92 (e) $Entry field with incorrect answer 368 (f) $460 2

Answer 1

Answer:

Unit Selling Price     Unit Variable Costs    Unit Contribution  Margin Contribution Margin Ratio

1. $570 $420    

Unit Contribution  Margin= Unit Sales Price Less  Unit Variable Price =

$ 570- $ 450 = $150 (a)

Contribution Margin Ratio = Contribution Margin/ Sales = 150/570* 100= 26 % (b)

2. $490      $490 -$130= $360 (c) $130        ($ 130/ $490)* 100= 27 % (d)

3. $23000 (e) $22540 (f) $460 2

Unit Contribution  Margin $460

Contribution Margin Ratio  2

Contribution Margin Ratio= Unit Contribution  Margin/Sales=  $460/ Sales  =2 %

$460/ Sales  =2 %

Sales = $ 460/2%= $ 23000

Sales - Unit Contribution  Margin = $ 460

Unit Contribution  Margin= Sales- $460 = $ 23000- $ 460= $ 22540