Smith Company sells hot tub covers. The price of a cover is $200. Variable product costs are $120 per unit and commissions are $10 per unit. Fixed overhead is $20,000. 2,000 units were produced and sold. Smith Company’s contribution margin ratio is:
Smith Company sells hot tub covers. The price of a cover is $200. Variable product costs are $120 per unit and commissions are $10 per unit. Fixed overhead is $20,000. 2,000 units were produced and sold. Smith Company’s contribution margin ratio is:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Smith Company sells hot tub covers. The price of a cover is $200. Variable product costs are $120 per unit and commissions are $10 per unit. Fixed overhead is $20,000. 2,000 units were produced and sold.
Smith Company’s contribution margin ratio is:
ANSWER
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40%
-
35%
-
60%
-
65%
-
I DON'T KNOW YET
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