Question
Company ABC sells widgets with a per-unit sales price of $5.00 and variable costs per unit of $4.00. ABC's fixed costs are $1,000 per month.
Company ABC sells widgets with a per-unit sales price of $5.00 and variable costs per unit of $4.00. ABC's fixed costs are $1,000 per month. What is the contribution margin per widget?
A.Not enough information given to calculate the answer
B.$5.00
C.$4.00
D.$1.00
Company ABC sells widgets with a per-unit sales price of $5.00 and variable costs per unit of $4.00. ABC's fixed costs are $1,000 per month. What is ABC's contribution margin ratio?
A.Not enough information given to calculate the correct answer
B.0.20
C.0.80
D.0.25
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
