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28 July, 12:26

MC Qu. 128 Leeks Company's product has ... Leeks Company's product has a contribution margin per unit of $13.57 and a contribution margin ratio of 23.0%. What is the selling price of the product

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  1. 28 July, 12:49
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    The price of the product is $59

    Explanation:

    Contribution margin is the net of the selling price and variable cost per unit. Contribution margin ratio is the ratio of contribution per unit to selling price per unit. As given below

    Contribution margin ratio = Contribution margin per unit / Selling price per unit

    23% = $13.57 / Selling price per unit

    Selling price per unit = $13.57 / 23% = $59
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