Problem-
Mark Corporation produces two models of calculators. The Business model sells for $60, and the Math model sells for $40. The variable expenses are given below:
|
|
Business Model
|
Math Model
|
|
Variable production costs per unit
|
$14
|
$15
|
|
Variable selling and administrative expenses per unit
|
$4
|
$1
|
The fixed expenses are $66,000 per month. The expected monthly sales of each model are: Business, 1,300 units; Math, 800 units. Calculate the contribution margin ratio for the Business.
Additional information-
The problem belongs to Accounting and it discuss about calculation of contribution margin ratio.