The questions if it is too small Q. The Steve Company manufactures a product that is expected to incur $30 per unit in variable production costs and sell for $75 per unit. The sales commission is 10% of the sales price. Due to intense competition, Steve actually sold 400 units for $50 per unit. The actual variable production costs incurred were $32.00 per unit. Calculate the total contribution margin ratio at the expected price/costs and the actual price/costs. How might management use this information?

1st dropdown box options are - "Both in total contribution margin and contribution margin ratio", or "Only in contribution margin ratio", or "Only in total contribution margin"

2nd dropdown box options are - "Actual contribution margin ratio and the actual contribution margin", or Expected contribution margin ratio and the expected contribution margin", or "Expected variable production costs and the actual variable production costs"

3rd dropdown box options are - "Continue the product if it is able to decrease", or "Discontinue the product if it is unable to decrease", or "Discontinue the product if it is unable to increase"

4th dropdown box options are - "Account for product profitability", or "Predict product profitability"

3. The Steve Company manufactures a product that is expected to incur $30 per unit in variable production costs and sell for $75 per unit. The sales commission is 10% of the sales price. Due to intense competition, Steve actually sold 400 units for $50 per unit. The actual variable production costs incurred were $32.00 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 Commission 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 Ratio How might management use this information? The actual results varied significantly from the expected results, The company Management should investigate the cause(s) for the difference in the the contribution margin. Also, because the prediction was significantly different from the actual results, management may also want to evaluate the methods the company uses to may decide to