Gabriel Company sells a product for $90 per unit. Variable costs are $40 per unit and fixed costs are $630 per month. The company expects to sell 650 units in September. Calculate the contribution margin per unit, in total, and as a ratio. Net Sales revenue per unitVariable costs per unit = Unit contribution marginNet Sales revenue Variable costs = Total contribution margin=Contribution margin / Net sales revenue==Contribution margin ratio (%)

Net Sales Revenue per unit-Variable cost per unit=Unit Contribution margin $…

Gabriel Company sells a product for $90 per unit. Variable costs are $40 per unit and fixed costs are $630 per month. The company expects to sell 650 units in September. Calculate the contribution margin per unit, in total, and as a ratio

Gabriel Company sells a product for $90 per unit. Variable costs are $40 per unit and fixed costs are $630 per month. The company expects to sell 650 units in September. Calculate the contribution margin per unit, in total, and as a ratio

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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Question

Net Sales revenue per unit
Variable costs per unit = Unit contribution margin
Net Sales revenue Variable costs = Total contribution margin
=
Contribution margin / Net sales revenue
=
=
Contribution margin ratio (%)

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