Determine contribution margin per unit
Problem:
Bugle Corp has sales of $400,000, a variable cost ratio of 40%, and a profit of $40,000.
Required:
Question: If 10,000 units were sold, what is the contribution margin per unit?
Note: Be sure to show how you arrived at your answer.
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Indicate whether the imputed interest rules should apply in the following situation. Assume all the loans were made at the beginning of the tax year unless otherwise indicated.
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Question: If 10,000 units were sold, what is the contribution margin per unit? Note: Be sure to show how you arrived at your answer.
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