If the unit sales price is $12,variable costs are $6 per unit and fixed costs are $26,000 what is the contribution margin ratio per unit?

Question

Quizplus · Accepted Answer

Contribution margin per unit = Unit sales price - Variable costs 
Contribution margin per unit = $12 - $6 = $6 
Contribution margin ratio per unit = (Contribution margin per unit / Unit sales price) x 100% 
Contribution margin ratio per unit = ($6 / $12) x 100% = 50%

If the Unit Sales Price Is $12,variable Costs Are $6