Question Content Area McCallen Company expects to produce and sell 500 units in the next month. The
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McCallen Company expects to produce and sell 500 units in the next month. The data on costs are as follows:
| Per-unit costs: | |
| Selling price | $8.00 |
| Variable manufacturing costs | 2.75 |
| Variable selling costs | 0.25 |
| Total costs: | |
| Fixed manufacturing costs | $1,000 |
| Fixed selling costs | 125 |
Required:
A. What is the variable cost per unit?
B. What is the contribution margin per unit?
C. What is the variable cost ratio? Round your answer to one decimal place.
D. What is the contribution margin ratio? Round your answer to one decimal place.
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