Rocha & Noel Company makes and sells dolls.The price is $15 and the variable expense per unit is $10.What is the contribution margin ratio? (Note: Round answer to two decimal places.)

Question

Quizplus · Accepted Answer

Contribution Margin per Unit = Price - Variable Cost per Unit
Contribution margin per unit = ($15 ? $10) = $5
Contribution Margin Ratio = Contribution Margin per Unit / Price
Contribution margin ratio = $5 / $15 = 0.33 or 33.33%

Rocha & Noel Company Makes and Sells Dolls