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Gabriel Company sells a product for $80 per unit. Variable costs are $50 per unit and fixed costs are $600 per month. The company expects to sell 620 units in September. Calculate the contribution margin per unit, in total, and as a ratio. Net Sales revenue per unit Variable costs per unit = Unit contribution margin 80 Net Sales revenue Variable costs = Total contribution margin = 50 = Contribution margin / Net sales revenue = Contribution margin ratio (%) / = 30

Gabriel Company sells a product for $80 per unit. Variable costs are $50 per unit and fixed costs are $600 per month. The company expects to sell 620 units in September. Calculate the contribution margin per unit, in total, and as a ratio. Net Sales revenue per unit Variable costs per unit = Unit contribution margin 80 Net Sales revenue Variable costs = Total contribution margin = 50 = Contribution margin / Net sales revenue = Contribution margin ratio (%) / = 30

FINANCIAL ACCOUNTING
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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Gabriel Company sells a product for $80 per unit. Variable costs are $50 per unit and fixed costs are $600 per month. The company expects to sell 620 units in September. Calculate the contribution margin per unit, in total, and as a ratio. Net Sales revenue per unit Variable costs per unit = Unit contribution margin 80 Net Sales revenue Variable costs = Total contribution margin = 50 = Contribution margin / Net sales revenue = Contribution margin ratio (%) / = 30
Transcribed Image Text:Gabriel Company sells a product for $80 per unit. Variable costs are $50 per unit and fixed costs are $600 per month. The company expects to sell 620 units in September. Calculate the contribution margin per unit, in total, and as a ratio. Net Sales revenue per unit Variable costs per unit = Unit contribution margin 80 Net Sales revenue Variable costs = Total contribution margin = 50 = Contribution margin / Net sales revenue = Contribution margin ratio (%) / = 30
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