Homework Help is Here – Start Your Trial Now!
Business
Accounting
Summit Industries has sales of $1,850,000 with direct materials cost of $195,000, direct labor of $285,000, variable overhead of $95,000, and fixed costs of $265,000. What is Summit's contribution margin rate? a. 75.8% b. 69.2% c. 68.9% d. 71.5%

Summit Industries has sales of $1,850,000 with direct materials cost of $195,000, direct labor of $285,000, variable overhead of $95,000, and fixed costs of $265,000. What is Summit's contribution margin rate? a. 75.8% b. 69.2% c. 68.9% d. 71.5%

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
See similar textbooks
icon
Related questions
Question
100%

What is summit's contribution margin rate ?

Summit Industries has sales of $1,850,000 with direct materials cost of $195,000, direct labor of $285,000, variable overhead of $95,000, and fixed costs of $265,000. What is Summit's contribution margin rate? a. 75.8% b. 69.2% c. 68.9% d. 71.5%
Transcribed Image Text:Summit Industries has sales of $1,850,000 with direct materials cost of $195,000, direct labor of $285,000, variable overhead of $95,000, and fixed costs of $265,000. What is Summit's contribution margin rate? a. 75.8% b. 69.2% c. 68.9% d. 71.5%
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS