**Determine the missing amounts.**| **Unit Selling Price** | **Unit Variable Costs** | **Unit Contribution Margin** | **Contribution Margin Ratio** ||------------------------|-------------------------|------------------------------|-------------------------------|| 1. $800 | $336 | $_______ | (a) _______ % (b) || 2. $350 | $_______ | $147 | _______ % (d) || 3. $_______ | (e) $_______ | $800 | 40% |**Explanation:**- **Unit Contribution Margin:** This is calculated as the Unit Selling Price minus the Unit Variable Costs. - **Contribution Margin Ratio:** This is derived by dividing the Unit Contribution Margin by the Unit Selling Price and then multiplying by 100 to get a percentage.

Answered: Determine the missing amounts. 1. 2. 3.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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**Determine the missing amounts.**

| **Unit Selling Price** | **Unit Variable Costs** | **Unit Contribution Margin** | **Contribution Margin Ratio** |
|------------------------|-------------------------|------------------------------|-------------------------------|
| 1. $800 | $336 | $_______ | (a) _______ % (b) |
| 2. $350 | $_______ | $147 | _______ % (d) |
| 3. $_______ | (e) $_______ | $800 | 40% |

**Explanation:**

- **Unit Contribution Margin:** This is calculated as the Unit Selling Price minus the Unit Variable Costs.

- **Contribution Margin Ratio:** This is derived by dividing the Unit Contribution Margin by the Unit Selling Price and then multiplying by 100 to get a percentage.

Expert Solution

Step 1: Explanation of all the terms

Unit Selling Price: The price at which a single unit of a product is sold to customers.

Unit Variable Cost: The cost incurred for producing a single unit of a product that varies with the level of production.

Unit Contribution Margin: The difference between the unit selling price and the unit variable cost, representing the contribution of each unit toward covering fixed costs and generating profit.

Contribution Margin Ratio: The percentage of the unit contribution margin in relation to the unit selling price, showing the proportion of each sale that contributes to covering fixed costs and profit.

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