Mountain Express Bus Company has fixed costs of $75,000 per month. The variable cost per passenger is $45, and tickets sell for $60. What is the contribution margin per unit and contribution margin ratio? a. $15 per passenger, 25% b. $45 per passenger, 75% c. $15 per passenger, 75% d. $15 per passenger, 20%

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...
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What is the contribution margin per unit and contribution margin ratio on these general accounting question?

Mountain Express Bus Company has fixed
costs of $75,000 per month. The variable cost
per passenger is $45, and tickets sell for $60.
What is the contribution margin per unit and
contribution margin ratio?
a. $15 per passenger, 25%
b. $45 per passenger, 75%
c. $15 per passenger, 75%
d. $15 per passenger, 20%
Transcribed Image Text:Mountain Express Bus Company has fixed costs of $75,000 per month. The variable cost per passenger is $45, and tickets sell for $60. What is the contribution margin per unit and contribution margin ratio? a. $15 per passenger, 25% b. $45 per passenger, 75% c. $15 per passenger, 75% d. $15 per passenger, 20%
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