Question

Paint Corp. has sales of $672,000, a contribution margin ratio of 40%, and a profit of $40,000. If 10,000 units were sold, wh
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Answer #1

Contribution = sales * contribution ratio

= $672000 *40%

= $268800

Variable cost = sales - contribution

= $672000 - $268800

= $403200

Variable cost per unit = $403200/10000 units = $40.32

Answer is option. A.

Feel free to ask any queries..

Also plz upvote it means a lot.. thank you

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