Refer to the Tan-O-Rama regression output given in M5-9. Suppose that the company charges $6 per tanning

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Refer to the Tan-O-Rama regression output given in M5-9. Suppose that the company charges $6 per tanning session. Calculate the unit contribution margin and contribution margin ratio as well as the total contribution margin if the shop books 400 tanning sessions this month.
Coefficients
Intercept .....5,046.12
x Variable 1 .... 2.19 Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Managerial Accounting

ISBN: 978-0078025518

2nd edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

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