Refer to Hunter Inc. information below.
Hunter Inc.
Hunter Inc. sells a unique product with the following information available:
$\begin{array}{ll}
\text { Sales price } & \$ 85 \text { per unit } \
\text { Variable costs } & \$ 25 \text { per unit } \
\text { Fixed Costs } & \$ 10000 \
\text { Units produced and sold } & 1250
\end{array}$
-What is the contribution margin ratio?

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as (Sales Price per Unit - Variable Cost per Unit) / Sales Price per Unit. Here, it is (\$85 - \$25) / \$85 = \$60 / \$85 = 0.7059 or 70.59%.

Refer to Hunter Inc -What Is the Contribution Margin Ratio? A) 41

Refer to Hunter Inc -What Is the Contribution Margin Ratio?
A) 41