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Question 3 2 pts Kellys Karts, LLC reported the following data: Sales quantity 1,000 units; total sales $90,000; total variaQuestion 5 2 Kellys Karts, LLC reported the following data: Sales quantity 1,500 units; Sales $120 per unit; Variable costs

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Answer #1

3)

Total Sales = $90 per unit  = $90,000

Less: Variable cost = $54 per unit = $54,000

Contribution Margin = $36 per unit = $36,000

Less: Fixed Cost = $28,000

Net Income = $8,000

So, Contribution Margin = (90,000 - $54,000) / 1,000 units = $36 per unit.

5)

Sales = $120 per unit = $180,000

Less: Variable cost = $48 per unit = $72,000

Contribution Margin = $72 per unit = $108,000

Contribution Margin ratio = Contribution Margin / Sales = 108,000 / $180,000

Contribution Margin ratio = 0.60 or 60%

So, therefore Contribution Margin ratio = 60%

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