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If Junction Transit's fixed costs total $65,000 per month, the variable cost per passenger is $42, and tickets sell for $65, what is the contribution margin per unit and contribution margin ratio?

If Junction Transit's fixed costs total $65,000 per month, the variable cost per passenger is $42, and tickets sell for $65, what is the contribution margin per unit and contribution margin ratio?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1EA: Calculate the per-unit contribution margin of a product that has a sale price of $200 if the...
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Please provide the solution to this financial accounting question using proper accounting principles.

If Junction Transit's fixed costs total $65,000 per month, the variable cost per passenger is $42, and tickets sell for $65, what is the contribution margin per unit and contribution margin ratio?
Transcribed Image Text:If Junction Transit's fixed costs total $65,000 per month, the variable cost per passenger is $42, and tickets sell for $65, what is the contribution margin per unit and contribution margin ratio?
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