Garcia's, a company that sells fishing nets, provides the following information about its product
Targeted operating income $54,000
Sales price per unit 10.00
Variable cost per unit 1.50
Total fixed costs 120,000
What is the contribution margin ratio? (Round any intermediate calculations and your final answer to two decimal places.)
A) 85.00%
B) 100%
C) 75.00%
D) 15.00%
A .A) Unit contribution margin = Net sales revenue per unit - Variable costs per unit
Net sales revenue per unit $10.00
Less: Variable costs per unit (1.50 )
Unit contribution margin $8.50
Contribution margin ratio = Contribution margin / Net sales revenue
Unit contribution margin $8.50
Divided by net sales revenue per unit 10.00
Contribution margin ratio 85.00%
You might also like to view...
____________________ ___________________ equals current assets minus current liabilities
Fill in the blank(s) with correct word
Which of the following is typically associated with cookie jar reserves?
a. Purchased in-process research and development b. Recognizing very high bad debt expense when earnings are high c. Recognizing revenue when a contract is signed prior to delivery of goods or performance of services d. Proforma earnings
Find the noun that requires an apostrophe ('). Indicate the correct possessive form of the noun with the apostrophe in the correct place. Example Jims files were misplaced. Jim's The two girls dresses were similar
Describe how a restaurant might enhance their customer service’s reliability, recovery, fairness, and wow factor. Give a hypothetical example of each principle in the context of a restaurant.
What will be an ideal response?