Mark Corporation produces two models of calculators. The Business model sells for $60, and the Math model sells for $40. The variable expenses are given below: The fixed expenses are $75,000 per month. The expected monthly sales of each model are: Business, 1,000 units; Math, 500 units.
-The contribution margin ratio for the Business model is:

Question

Mark Corporation produces two models of calculators. The Business model sells for $60, and the Math model sells for $40. The variable expenses are given below:  The fixed expenses are $75,000 per month. The expected monthly sales of each model are: Business, 1,000 units; Math, 500 units.
-The contribution margin ratio for the Business model is:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $60 per unit - ($15 per unit + $9 per unit)= $60 per unit - $24 per unit = $36 per unit
CM ratio = $36 per unit F1F1F1S1F1F1F10 $60 per unit = 0.60

Mark Corporation Produces Two Models of Calculators