Question
M5-12 (Algo) Calculating Unit Contribution Margin and Contribution Margin Ratio [LO 5-5] Tan-O-Rama is a local tanning salon. Its regression output is as follows: Coefficients
M5-12 (Algo) Calculating Unit Contribution Margin and Contribution Margin Ratio [LO 5-5]
Tan-O-Rama is a local tanning salon. Its regression output is as follows:
| Coefficients | |
|---|---|
| Intercept | 4,582.67 |
| X Variable 1 | 3.44 |
Suppose that the company charges $6.60 per tanning session.
Required:
Calculate the unit contribution margin.
Calculate contribution margin ratio.
Calculate the total contribution margin if the shop books 1,300 tanning sessions this month.
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