Contribution Margin [LO 3] Rhetorix, Inc. produces stereo speakers.The selling price per pair of speakers is $1600.
Question:
Contribution Margin [LO 3] Rhetorix, Inc. produces stereo speakers.The selling price per pair of speakers is $1600. The variable cost of production is $544 and the fixed cost per month is $67,400.
Required
a. Calculate the Contribution Margin associated with a pair of speakers.
b. In August, the company sold seven more pairs of speakers than planned. What is the expected effect on profit of selling the additional speakers?
Contribution MarginContribution 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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a Solution Computation of the Contribution Margin for a pair of speakers Given information S...View the full answer
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