Sales (18,000 units)Variable expensesContribution marginFixed expenses$ 360,000144,e00216,eee180,eeeOperating income$ 36,eeeRequired:Answer each question Independently based on the original data:1. What is the product's CM ratio?

CM ratio is calculated as ratio of contribution margin and sales

Sales (18,000 units) Variable expenses Contribution margin Fixed expenses $ 360,000 144,eee 216,000 180,e00 $ 36,000 Operating income Required: Answer each question independently based on the original data: 1. What is the product's CM ratio?

Sales (18,000 units) Variable expenses Contribution margin Fixed expenses $ 360,000 144,eee 216,000 180,e00 $ 36,000 Operating income Required: Answer each question independently based on the original data: 1. What is the product's CM ratio?

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

Sales (18,000 units)
Variable expenses
Contribution margin
Fixed expenses
$ 360,000
144,e00
216,eee
180,eee
Operating income
$ 36,eee
Required:
Answer each question Independently based on the original data:
1. What is the product's CM ratio?

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