Contribution margin

Molly Company sells $31,000$ units at $$15$ per unit. Variable costs are $$12\mathrm{.}30$ per unit, and fixed costs are $$42,700.$

Determine $($a$)$ the contribution margin ratio, $($b$)$ the unit contribution margin, and $($c$)$ operating income.

a$.$ Contribution margin ratio $($Enter as a whole number.$)$

X $\%$

b$.$ Unit contribution margin $($Round to the nearest cent.$)$ per unit

c$.$ Operating income

Feedback

Check My$.$ Work

a$.$ Unit contribution margin divided by unit sales price equals contribution margin ratio.

b$.$ Unit sales price minus unit variable costs equals unit contribution margin.

c$.$ Contribution margin minus fixed costs equals income from operations.