Chapter 5, Problem 10ME

To determine

Contribution Margin Ratio:

Contribution Margin is the amount of sales after adjusting variable costs. Contribution Margin ratio is calculated with the help of following formulas:

$\text{Contribution Margin }\left(\text{Ratio}\right)\text{ = }\frac{\text{(Sales price per unit -Variable Cost per unit)}}{\text{Sales price per unit}}\times 100$

To calculate:

The Contribution Margin and Contribution Margin Ratio