The Halpert Group produces a single product selling for $70 per unit. Variable costs are $7 per unit and total fixed costs are $5,000. What is the contribution margin ratio?

Name: The Halpert Group produces a single product selling for $70 per unit. Variable costs are $7 per unit and total fixed costs are $5,000. What is the contribution margin ratio?
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Question

Quizplus · Accepted Answer

The contribution margin per unit is $70 - $7 = $63. The contribution margin ratio is $63 / $70 = 0.90.

The Halpert Group Produces a Single Product Selling for $70