Homework Help is Here – Start Your Trial Now!
Business
Accounting
Metro Rail Transit's fixed costs total $50,000 per month. The variable cost per passenger is $28, and tickets sell for $42 each. Required: 1. Compute the contribution margin per unit. 2. Compute the contribution margin ratio. Options: A) $28 per passenger, 66.7% B) $14 per passenger, 33.3% C) $14 per passenger, 66.7% D) $28 per passenger, 33.3%

Metro Rail Transit's fixed costs total $50,000 per month. The variable cost per passenger is $28, and tickets sell for $42 each. Required: 1. Compute the contribution margin per unit. 2. Compute the contribution margin ratio. Options: A) $28 per passenger, 66.7% B) $14 per passenger, 33.3% C) $14 per passenger, 66.7% D) $28 per passenger, 33.3%

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 11EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...
See similar textbooks
icon
Related questions
Question

Calculate contribution margin per unit and ratio

Metro Rail Transit's fixed costs total $50,000 per month. The variable cost per passenger is $28, and tickets sell for $42 each. Required: 1. Compute the contribution margin per unit. 2. Compute the contribution margin ratio. Options: A) $28 per passenger, 66.7% B) $14 per passenger, 33.3% C) $14 per passenger, 66.7% D) $28 per passenger, 33.3%
Transcribed Image Text:Metro Rail Transit's fixed costs total $50,000 per month. The variable cost per passenger is $28, and tickets sell for $42 each. Required: 1. Compute the contribution margin per unit. 2. Compute the contribution margin ratio. Options: A) $28 per passenger, 66.7% B) $14 per passenger, 33.3% C) $14 per passenger, 66.7% D) $28 per passenger, 33.3%
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS