Question

%E7-39A (similar to) Question Help GigaCo Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras and other devices). Price and cost data for a relevant range extending to 200,000 units per month are as follows: Click the loon to view the data) Read the requirements i Data Table Requirement 1. What is the company's contribution margin per unit? Contribution margin percentage? Begin by identifying the formula Sales price per unit - Variable cost per unit . Contributi 25.00 The contribution margin per unit is $ 7.10 6.60 700 Sales price per unit: current monthly sales volume is 120,000 units)......$ Variable costs per unit: Direct materials Direct labor $ Variable manufacturing overbead Variable selling and administrative expenses Monthly fed expenses Fixed macacturing overbead... ... Fixed selling and administrative expenses........... $ What is the company's contribution margin percentage? Begin by identifying the formula Contribution margin per unit Sales price per unit 240 ) Contribut (Round your answer to the nearest whole percent.) 241,900 327.900 The contribution margin percentage is % Print Done Enter any number in the edit fields and then click Check Answer 21 parts Clear All Final Check

Answer 1

Contribution margin per unit = $7.10

Selling price per unit = $25

(Contribution margin per unit / Selling price per unit) = Contribution margin ratio

= ($7.10 / $25)

= 28%