a) b) 1) Company ABC sells 1,000 units of product X at 50$ each. The total variable cost per unit is 35$. what is the contribution margin? How do you interpret it? What is the contribution margin ratio? Solution: Contribution margin= Sales (revenue)- total Variable cost contribution margin ratio= (sales- total variable cost)/ sales 2) a) b) Product X has a contribution margin ratio of 85% and product Y has a contribution margin ratio of 45%. How do you compare these two products according to their contribution margin ratio? How we can increase the contribution margin of product Y? Below is the information about company's selling price, fixed cost and variable variable cost per unit= 35$ fixed cost 10,000$ sales price= 60$ ind BEF If the company in terms of units sold and dollars sold? UJ now do you interpret? c) what are your suggestions to lower BEP. Fixed Costs 000 Break-Even Quantity = Sales Price Per Unit-Variable Cost Per Un