Raghu Manufacturing has sales of $2,450,000 with direct materials cost of $265,000, direct labor of $389,000, variable overhead of $125,000, and fixed costs of $328,500. What is Raghu's contribution margin rate?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
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Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 8EA: Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000...
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Contribution margin rate?

Raghu Manufacturing has sales of
$2,450,000 with direct materials cost of
$265,000, direct labor of $389,000,
variable overhead of $125,000, and fixed
costs of $328,500.
What is Raghu's contribution margin
rate?
Transcribed Image Text:Raghu Manufacturing has sales of $2,450,000 with direct materials cost of $265,000, direct labor of $389,000, variable overhead of $125,000, and fixed costs of $328,500. What is Raghu's contribution margin rate?
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