Question
8. Both Samsung and Apple sell smartphones. Assume the following data are available for a popular smartphone model of each company. Samsung Apple Selling price
8. Both Samsung and Apple sell smartphones. Assume the following data are available for a popular smartphone model of each company.
|
| Samsung | Apple |
| Selling price per unit | $720 | $650 |
| Variable cost per unit | $288 | $221 |
a) Compute the contribution margin ratio for each model.
b) Based on the contribution margin ratio, which companys smartphone sales contribute more to covering fixed costs? Explain your answer. (Minimum 45 words)
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
