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 Net Sales revenue - 80 50 = Variable costs = Total contribution margin = 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 Net Sales revenue - 80 50 = Variable costs = Total contribution margin = Contribution margin/Net sales revenue = Contribution margin ratio (%) 30
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 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
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