Contribution MarginSally Company sells 37,000 units at $42 per unit. Variable costs are $30.24 per unit, and fixed costs are $248,000.

Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.

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a.Contribution margin ratio (Enter as a whole number.): fill in the blank ___________%

b.Unit contribution margin (Round to the nearest cent.): $11.76 per unit (correct)

c.Income from operations: fill in the blank $__________

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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.

Learning Objective 2.