Homework Answers
Total sales 6000 Units *80
Total sales =480,000
Total variable cost =6000*15 =90000
Selling expense:
selling expense + 5 percent selling price
=5000+(480,000*5/100)
=29000
Administrative Expenses:
4000+10% of selling price
=4000+(480,000*5/100)
=52000
Total Cost of goods sold :
Total variable cost+Selling expense+Administrative Expenses
=90000+29000+52000
=171,000
Contribution ratio :
Total sales -Total cost of goods sold /Total sales
=480,000-171,000/480,000
=0.64
=64% nearest is 66.25
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