Question - Zortfyon, SA sells two models of their product in Russia, the Budget model and the Luxury model. They have supplied the following data:
Budget Luxury
Selling Price $42 $94
Expected unit sales per month 2500 13000
variable production costs per unit $16 $21
variable selling and admin costs per unit $9 $9
Fixed Expenses are $76,246 per month.
Zortfyons contribution margin ratio for the Budget model is to closest to:
A. 48.53%
B. 54.28%
C. 60.15%
D. 68.09%
E. 40.48%