Calculate contribution margin ratio for this product. selling price per unit 400 variable cost per unit 100 monthly sales volume 600 fixed expenses per month total 185820?In: College Degrees |
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Answer
The first step is to calculate the Unit contribution margin UCM= USP -UVC,
That is, UCM = Unit selling price - Unit Variable price
Therefore here, UCM= 400-100=300
The next step is: Contribution Margin Ratio = UCM/USP
i.e, CMR= 300/400= 0.75 = 75%
First answer by ID2175528290. Last edit by ID2175528290. Question popularity: 17 [recommend question]
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