Chapter 21, Problem E21.32E

To determine

Contribution marginand Contribution margin Ratio:

The Contribution margin is the excess of sales revenue over variable cost of goods sold (i.e. variable product cost and variable period cost). The contribution margin can be expressed in terms of per unit as well as total amount. The contribution margin refers to the amount which contributes towards the fixed cost and operating income of the business. The Contribution margin ratio is a relative percentage of contribution over sales revenue.

The Completion of table showing contribution margin per unit, contribution margin earned and contribution margin ratio.