Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gabriel Company sells a product for $ 9 0 per unit. Variable costs are $ 4 0 per unit and fixed costs are $ 6

Gabriel Company sells a product for $90 per unit. Variable costs are $40 per unit and fixed costs are $630 per month. The company expects to sell 650 units in September. Calculate the contribution margin per unit, in total, and as a ratio.
Net Sales revenue per unit - Variable costs per unit = Unit contribution margin
-
=
Net Sales revenue - Variable costs = Total contribution margin
-
=
Contribution margin / Net sales revenue = Contribution margin ratio (%)
/
=

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing

Authors: Walter Gerry Kell, William C. Boynton, Richard E. Ziegler

5th Edition

0471542830, 9780471542834

More Books

Students also viewed these Accounting questions