Exercise 5-7 (Algo) Contribution margin LO A1

A jeans maker is designing a new line of jeans called Slams. Slams will sell for $290 per unit and cost $182.70 per unit in variable costs to make. Fixed costs total $68,500. (Round your answers to 2 decimal places.)

1. Compute the contribution margin per unit.
	Contribution margin
2. Compute the contribution margin ratio.
	Numerator:	/	Denominator:	=	Contribution Margin Ratio
		/		=	Contribution margin ratio
3. Compute income if 6,700 units are produced and sold
Income