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2) Contribution Margin DATA Fixed Costs Fixed Factory Overhead = $50,000 Fixed Selling overhead = $10,000...

2) Contribution Margin

  1. DATA
    1. Fixed Costs
      1. Fixed Factory Overhead = $50,000
      2. Fixed Selling overhead = $10,000
    2. Variable Costs
      1. Variable Manufacturing costs = $10
      2. Variable selling cost per unit = $4
    3. Cost Per Unit = $35
  2. Calculate the CM
  3. Calculate the CM %

Note: the selling price is not given

How can we find the selling price by giving info

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Answer #1

CM = price-variable cost = 35-4-10=21

CM% = CM/price = 21/35= 60%

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