Dalian Company provides the following information:
$$\begin{array} { l l }
\text { Price per unit: } & \$ 20 \
\text { Variable cost per unit: } & \$ 8 \
\text { Fixed costs per month: } & \$ 15,000
\end{array}$$
-
How much is the contribution margin ratio?

Question

Dalian Company provides the following information:
$$\begin{array} { l l } 
\text { Price per unit: } & \$ 20 \
\text { Variable cost per unit: } & \$ 8 \
\text { Fixed costs per month: } & \$ 15,000
\end{array}$$
-
How much is the contribution margin ratio?

Quizplus · Accepted Answer

The contribution margin per unit is calculated as the selling price per unit minus the variable cost per unit, which is $20 - $8 = $12. The contribution margin ratio is then the contribution margin per unit divided by the selling price per unit: $12 / $20 = 0.60 or 60%.

Dalian Company Provides the Following Information - How Much Is the Contribution Margin Ratio? A) 12

Dalian Company Provides the Following Information -
How Much Is the Contribution Margin Ratio?
A) 12