Ask Question
17 March, 00:49

Zeke Company sells 26,900 units at $16 per unit. Variable costs are $9 per unit, and fixed costs are $38,100. The contribution margin ratio and the unit contribution margin, respectively, are

+3
Answers (1)
  1. 17 March, 01:00
    0
    Contribution margin ratio = 0.4375

    Contribution margin = $7

    Explanation:

    Giving the following information:

    Zeke Company sells 26,900 units at $16 per unit. Variable costs are $9 per unit, and fixed costs are $38,100.

    To calculate the contribution margin per unit, we need to use the following formula:

    Contribution margin = selling price - unitary variable cost

    Contribution margin = 16 - 9 = $7

    Now, we can calculate the contribution margin ratio:

    Contribution margin ratio = contribution margin / selling price

    Contribution margin ratio = 7/16

    Contribution margin ratio = 0.4375
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Zeke Company sells 26,900 units at $16 per unit. Variable costs are $9 per unit, and fixed costs are $38,100. The contribution margin ratio ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers