XYZ Industries has sales of $4,200,000 with direct materials cost of $630,000, direct labor of $840,000, variable overhead of $210,000, and fixed costs of $560,000. What is XYZ's contribution margin rate?

XYZ Industries has sales of $4,200,000 with direct materials cost of $630,000, direct labor of $840,000, variable overhead of $210,000, and fixed costs of $560,000. What is XYZ's contribution margin rate?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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I am searching for the correct answer to this general accounting problem with proper accounting rules.

XYZ Industries has sales of $4,200,000 with direct materials cost
of $630,000, direct labor of $840,000, variable overhead of
$210,000, and fixed costs of $560,000. What is XYZ's contribution
margin rate?

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