Question
In: Accounting
Vaughn Manufacturing produces flash drives for computers, which it sells for $25 each. Each flash drive...
Vaughn Manufacturing produces flash drives for computers, which it sells for $25 each. Each flash drive costs $10 of variable costs to make. During April, 1000 drives were sold. Fixed costs for March were $2 per unit for a total of $1000 for the month. How much is the contribution margin ratio?
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Expert Solution
Answer:
Contribution margin per unit = Sale price – Variable cost
= 25 – 10
= $15
Contribution margin ratio = Contribution margin per unit/Sale price per unit *100
= 15/25 *100
= 60%
ekkarill92 answered 8 months agoRelated Solutions
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