ny has provided the following inform r unit $56 per 12 er $14 00n

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Guava Company has provided the following information:
Sales price per unit
$56
Variable cost per
unit
12
Fixed costs per
month
$16,000
Calculate the contribution margin ratio. (Round your answer to two
decimal places.)
O 21.43%
O 64.71%
O 82.35%
78.57%
Transcribed Image Text:Guava Company has provided the following information: Sales price per unit $56 Variable cost per unit 12 Fixed costs per month $16,000 Calculate the contribution margin ratio. (Round your answer to two decimal places.) O 21.43% O 64.71% O 82.35% 78.57%
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