Question
A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for $510 and has per-unit variable costs of $204 associated with
A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for $510 and has per-unit variable costs of $204 associated with its production. The company has fixed expenses of $30,000 per month. In May, the company sold 240 of the Bomber model bikes.
A. Calculate the contribution margin per unit for the Bomber.
Contribution margin $ per unit
B. Calculate the contribution margin ratio of the Bomber.
Contribution margin ratio %
C. Prepare a contribution margin income statement for the month of May. Use a minus sign for a net loss if present.
| Income Statement | |
| Sales | $ |
| Variable Costs | |
| Contribution Margin | $ |
| Fixed Costs | |
| Net Income (Loss) | $ |
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Stats Data And Models
Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock
4th Edition
321986490, 978-0321989970, 032198997X, 978-0321986498
