What is the Contribution Margin Ratio (in percentage) if the selling price is $28? Do not enter any sign or symbol, only enter two (2) decimal places numbers, such as 123.56.
Question
What is the Contribution Margin Ratio (in percentage) if the selling price is $28? Do not enter any sign or symbol, only enter two (2) decimal places numbers, such as 123.56.
Solution
To calculate the Contribution Margin Ratio, we need more information than just the selling price. The Contribution Margin Ratio is calculated as follows:
Contribution Margin Ratio = (Selling Price per Unit - Variable Cost per Unit) / Selling Price per Unit
So, we need to know the variable cost per unit to calculate the Contribution Margin Ratio. Once we have that, we can substitute the values into the formula and calculate the ratio. The result is then multiplied by 100 to get the percentage.
Without the variable cost per unit, it's impossible to calculate the Contribution Margin Ratio.
Similar Questions
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A product has a sales price of $234 and a per-unit variable cost of $64.What is the contribution margin ratio? Please answer to 2 decimal places
Refer to the following Cost-Volume-Profit (CVP) graph of a business entity to answer the following question. What is the Contribution Margin Ratio (in percentage) if the selling price is $28? Do not enter any sign or symbol, only enter two (2) decimal places numbers, such as 123.56.
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