Maybepay Life Insurance Co. is selling a perpetual contract that pays $4,990/year. The contract currently sells for $143,012. Wh
1 answer:
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Answer:
50%
Explanation:
Given: Selling price= $120 per unit.
Variable cost= $60 per unit.
First computing contribution margin.
Contribution margin=
⇒ Contribution margin=
∴ Contribution margin=
Now, calculating the contribution margin ratio.
Contribution margin ratio=
⇒ Contribution margin ratio=
∴ Contribution margin ratio=
Hence, the product´s contribution ratio is 50%.