Jana's Company produces tie racks. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. Jana expects to produce 60,000 units and sell 80,000 units at a price of $20 per unit. What is the Contribution Margin Ratio?
Jana's Company produces tie racks. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. Jana expects to produce 60,000 units and sell 80,000 units at a price of $20 per unit. What is the Contribution Margin Ratio?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Jana's Company produces tie racks. The estimated fixed costs for the year
are $288,000, and the estimated variable
costs per unit are $14. Jana
expects to prodqce 60,000 units and sell 80,000 units at a price of $20
per unit. What is the Contribution Margin Ratio?
O0.60
O 0.12
D0.30
None of the above
4p
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