1A company sells small motors as a component part to automobiles. The Model 101 motor sells for $850 and has per-unit variable costs of $400 associated with its production. The company has fixed expenses of $90,000 per month. In August, the company sold 425 of the Model 101 motors. Calculate the contribution margin per unit for the Model 101. Calculate the contribution margin ratio of the Model 101. Prepare a contribution margin income statement for the month of August
1A company sells small motors as a component part to automobiles. The Model 101 motor sells for $850 and has per-unit variable costs of $400 associated with its production. The company has fixed expenses of $90,000 per month. In August, the company sold 425 of the Model 101 motors. Calculate the contribution margin per unit for the Model 101. Calculate the contribution margin ratio of the Model 101. Prepare a contribution margin income statement for the month of August
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1A company sells small motors as a component part to automobiles. The Model 101 motor sells for $850 and has per-unit variable costs of $400 associated with its production. The company has fixed expenses of $90,000 per month. In August, the company sold 425 of the Model 101 motors.
- Calculate the contribution margin per unit for the Model 101.
- Calculate the contribution margin ratio of the Model 101.
Prepare a contribution margin income statement for the month of August
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