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A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for $610 and has per-unit variable costs of $305 associated
A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for $610 and has per-unit variable costs of $305 associated with its production. The company has fixed expenses of $40,000 per month. In May, the company sold 235 of the Bomber model bikes. A. Calculate the contribution margin per unit for the Bomber Contribution margin s 305 per unit B. Calculate the contribution margin ratio of the Bomber. Contribution margin ratio 50 % C. Prepare a contribution margin income statement for the month of May. Use a minus sign for a net loss if present. Sales Income Statement Variable Costs Contribution Margin Fixed Costs Gross Profit
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