Gerald Enterprise provides the following information about its single product, for eachmonth:Estimated Sales UnitsSelling price per unitVariable cost per unitTotal fixed expense3,500 units$150$90$24,000What is the contribution margin ratio?Oa. 40%O b. 250%O c.50%O d. 60%4 Direct MaterialsDirect LabourManufacturing OverheadTotal cost to account for$385,000139,75086,000$610,750The units still in process are 100% complete with respect to direct materials and 35%complete with respect to conversion costs.The cost of the December 31 Work in Process Inventory would be:a. $436,500O b. $174,250O c. $218,125Od. $610,750

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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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Gerald Enterprise provides the following information about its single product, for eac month: Estimated Sales Units Selling price per unit Variable cost per unit Total fixed expense 3,500 units $150 $90 $24,000 What is the contribution margin ratio?