Company Name: Delta Electronics Delta Electronics has a product with a selling price per unit of $120, the unit variable cost is $45, and the total monthly fixed costs are $200,000. How much is Delta's contribution margin ratio? Options: a) 37.5% b) 62.5% c) 50% d) 41.67%

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...
icon
Related questions
Question

Can you guide me through solving this financial accounting problem using proper techniques?

Company Name: Delta Electronics
Delta Electronics has a product with a selling price per unit of $120, the unit
variable cost is $45, and the total monthly fixed costs are $200,000.
How much is Delta's contribution margin ratio?
Options:
a) 37.5%
b) 62.5%
c) 50%
d) 41.67%
Transcribed Image Text:Company Name: Delta Electronics Delta Electronics has a product with a selling price per unit of $120, the unit variable cost is $45, and the total monthly fixed costs are $200,000. How much is Delta's contribution margin ratio? Options: a) 37.5% b) 62.5% c) 50% d) 41.67%
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer