Question

Brief Exercise 18-06

Determine the missing amounts.

		Unit Selling Price			Unit Variable Costs			Unit Contribution Margin			Contribution Margin Ratio
1.		$800			$416			$enter a dollar amount	(a)		enter percentages	% (b)
2.		$250			$enter a dollar amount	(c)		$85			enter percentages	% (d)
3.		$enter a dollar amount	(e)		$enter a dollar amount	(f)		$455			35	%

Answer 1

Answer

--Requirement

	Unit selling price	Unit Variable cost	Unit Contribution margin	CM Ratio
1	$800	$416	$384	0.48
2	$250	$165	$85	0.34
3	$1,300	$845	$455	35%

--Working

	Unit selling price	Unit Variable cost	Unit Contribution margin	CM Ratio
1	800	416	=800-416	=384/800
2	250	=250-85	85	=85/250
3	=455/(0.35)	=1300-455	455	0.35