Question

Determine the missing amounts in the following table: (Round your percentage answers to the nearest whole number and other an

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Answer #1

Answer:

Unit
Sales
Price
Unit
Variable
Costs
Unit
Contribution
Margin
Contribution
Margin
Ratio
Calculations
$22.00 $10.00 $12.00 54.55% Unit contribution margin = $22-$10=$12;
Contribution margin ratio = ($12 ÷ $22) x 100 = 54.55%
$34.00 $10.00 $24.00 70.59% Unit sales price = $10+$24 = $34;
Contribution margin = ($24 ÷ $34) x 100 = 70.59%
$50.00 $37.50 $12.50 25% Unit contribution margin = $50 x 25% = $12.50
Unit Variable cost = $50 - $12.50 = $37.50

Formulas used:

Unit contribution margin = Unit sales price - Unit variable costs

Unit contribution margin = Unit sales price x Contribution margin ratio

Contribution margin ratio = (Unit contribution margin ÷ Unit sales price) x 100%

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