Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company sells small motors as a component part to automobiles. The Model 101 motor sells for $770 and has per unit variable costs of
A company sells small motors as a component part to automobiles. The Model 101 motor sells for $770 and has per unit variable costs of $462 The company has fired expenses of $90,000 per month. In August, the company sold 430 of the Model 101 motors. octet s producer A. Calculate the contribution margin per unit for the Model 101. Contribution margin $ 308 per unit B. Calculate the contribution margin ratio of the Model 101. Contribution margin ratio 1*% Feedback C. Prepare a contribution margin income statement for the month of August. Use a minus sign for a net loss if present. Income Statement Sales 770 X Variable Costs 308 X Contribution Margin 308 X Fbced Costs 90.000 Net Income (Loss)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started