2-4

QUESTION 4 Mark Corporation produces two models of calculators. The Business model sells for $60, and the Math model sells for $40. The variable expenses are given below: Business Model Meth Model Variable production costs per unit $15 $16 Variable selling and administrative expenses per unit $9 $6 The fixed expenses are $75,000 per month. The expected monthly sales of each model are: Business, 1,000 units; Math, 500 units. The contribution margin ratio for the Business model is: 40% 75% 85% 60%