1. Jeff Inc. sells a single product for $12 per unit. Variable production costs are $6 per unit. Variable selling costs are $2 per unit.

What is Jeff Inc's contribution margin per unit?

• A.

  7

• B.

  12

• C.

  4

• D.

  4

2.

Jeff Inc. sells a single product for $12 per unit. Variable production costs are $6 per unit. Variable selling costs are $2 per unit.

What is Jeff Inc's contribution margin ratio (rounded)?

• A.

  40%

• B.

  33%

• C.

  20%

• D.

  10%