Question

Determine the missing amounts. (Round answers to 0 decimal places, e.g. 1,225.)

		Unit Selling Price			Unit Variable Costs			Unit Contribution Margin			Contribution Margin Ratio
1.		$510			$410			$	(a)			% (b)
2.		$380			$	(c)		$140				% (d)
3.		$	(e)		$	(f)		$420			40	%

Answer 1

Correct Answer:

case	Unit selling price	Unit variable costs	Unit contribution margin	contribution margin ratio
1	$           510	$        410	$        100	20%
2	$           380	$        240	$        140	37%
3	$        1,050	$        630	$        420	40%

working:

case	1
A	Unit selling price	510
B	Unit variable costs	410
C=A-B	Unit contribution margin	100
D=C/A *100	contribution margin ratio	20%

Case	2
A	Unit selling price	380
B	Unit contribution margin	140
C=A-B	Unit variable costs	240
D=B/A *100	contribution margin ratio	37%

Case	3
A	Unit contribution margin	420
B	contribution margin ratio	40%
C=A/B	Unit selling price	1050
D=C-A	Unit variable costs	630

End of answer.

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