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

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