Ask Question
27 November, 05:28

Dakota Company provides the following information about its single product: Targeted operating income $40,000 Selling price per unit $3.50 Variable cost per unit $1.05 Total fixed costs $90,000 What is the contribution margin ratio

+2
Answers (1)
  1. 27 November, 08:15
    0
    57%

    Explanation:

    Contribution margin ratio is the ratio of difference between a company's revenue and variable expenses to the revenue of the company. It is usually expressed as a percentage.

    This is also the ratio of the contribution margin to sales.

    Given that Selling price per unit $3.50 Variable cost per unit $1.05

    Contribution margin ratio

    = (3.50 - 1.50) / 3.50

    =2/3.5

    = 0.57

    = 57%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Dakota Company provides the following information about its single product: Targeted operating income $40,000 Selling price per unit $3.50 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers