Ask Question
3 September, 01:31

Zeke Company sells 26,900 units at $16 per unit. Variable costs are $9 per unit, and fixed costs are $38,100. The contribution margin ratio and the unit contribution margin, respectively, are

+1
Answers (1)
  1. 3 September, 02:00
    0
    Contribution margin ratio = 0.4375

    Contribution margin = $7

    Explanation:

    Giving the following information:

    Zeke Company sells 26,900 units at $16 per unit. Variable costs are $9 per unit, and fixed costs are $38,100.

    To calculate the contribution margin per unit, we need to use the following formula:

    Contribution margin = selling price - unitary variable cost

    Contribution margin = 16 - 9 = $7

    Now, we can calculate the contribution margin ratio:

    Contribution margin ratio = contribution margin / selling price

    Contribution margin ratio = 7/16

    Contribution margin ratio = 0.4375
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Zeke Company sells 26,900 units at $16 per unit. Variable costs are $9 per unit, and fixed costs are $38,100. The contribution margin ratio ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers