Drop Down Menu Choices:

1.) both in total contribution margin ratio and contribution margin ratio, only in contribtion margin ratio, only in total contribution margin ratio

2.) actual contribution margin ratio and the actual contribution margin, expected contribution margin ratio and the expected contribution margin, expected variable production costs and the actual variable production costs

3.) continue the product if it is able to decrease, discontinue the product if it is unable to decrease, discontinue the product if it is unable to increase

4.) account for product profitability, predict product profitability

. The Stalk Company manufactures a product that is expected to Incur $30 per unit in varlable production costs and sell for S60 per unit. The sales commission is 10 % of the sales price. Due to intense competition, Stalk actually sold 300 units for $50 per unit. The actual variable production costs incurred were $40.00 per unit. Calculate the total contribution margin and contribution margin ratio at the expected price/costs and the actual price/costs. How might management use this information? Complete the expected contribution margin by entering the appropriate amounts to calculate the total contribution margin and contribution margin ratio. (Enter the contribution margin ratio to two decimal place, X.XX %. ) Expected Contribution Margin Net Sales Revenue Variable Costs: Production Costs Sales Commisaion Contribution Margin Contribution Margin Ratio Complete the actual contribution margin by entering the appropriate amounts to calculate the total contribution margin and contribution margin ratio. (Enter the contribution margin ratio to two decimal place, X.XX % .) Actual Contribution Margin Net Sales Revenue Variable Costs: Production Costs Sales Commission Contribution Margin Contribution Margin Ratlo How might management use this information? How might management use this information? The actual results varied aignificantly from the expected results, Management should inveatigate the cause(B) for the difference in the The company may decide to the contribution margin. Also,, because the prediction was significantly different from the actual results, management may also want evaluate the methods the company uses to