Silverado Company incurred the following costs in the production of 10,000 units of its main product X: P 1,000 Selling price per unit 150 Direct material 120 Direct labor 100 Variable overhead Variable selling and administrative expense 180 Total fixed overhead 2,200,000 Total fixed selling and administrative expense 880,000 What is the contribution margin ratio? 1. 37% 2. 45% 3. 55%
Silverado Company incurred the following costs in the production of 10,000 units of its main product X: P 1,000 Selling price per unit 150 Direct material 120 Direct labor 100 Variable overhead Variable selling and administrative expense 180 Total fixed overhead 2,200,000 Total fixed selling and administrative expense 880,000 What is the contribution margin ratio? 1. 37% 2. 45% 3. 55%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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