If Interval Railway's fixed costs total $40,000 per month, the variable cost per passenger is $30, and tickets sell for $40, what is the contribution margin per unit and contribution margin ratio? a. $30 per passenger, 75% b. $30 per passenger, 25% c. $10 per passenger, 75% d. $10 per passenger, 25%

If Interval Railway's fixed costs total $40,000 per month, the variable cost per passenger is $30, and tickets sell for $40, what is the contribution margin per unit and contribution margin ratio? a. $30 per passenger, 75% b. $30 per passenger, 25% c. $10 per passenger, 75% d. $10 per passenger, 25%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...

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