Question

A company sells small motors as a component part to automobiles. The Model 101 motor sells for $760 and has per unit variable costs of $380 associated with its production. The company has fixed expenses of $90,000 per month. In August, the company sold 435 of the Model 101 motors A. Calculate the contribution margin per unit for the Model 101. Contribution margin per unit B. Calculate the contribution margin ratio of the Model 101. Contribution margin ratio C. Prepare a contribution margin income statement for the month of August. Use a minus sign for a net loss if present. Income Statement Check My Work Previous Next > ructor Save and Submit Anwent for Grading

Answer 1

Contribution Marique per unit = selling price - Variable pea whit cost per => 760 - 380 - 38 o permit Contribution Marigin eratio = Canterbution 100 sales -) 380 x 435 y loo 7608 435 =) L x100 z 50% 2 units 1 & Units / Contribution = Conteribution Margin permit a is Unnits sold = salepsiceperunt X Contribution Margin Income Statement : Sales - Variable Expenses Contribution Margiu - fixed expenses Net perolit 3,30,600 1,65,300 1,65,300 90,000 $75,300