Asked by
Karma Tharchin
on Dec 16, 2024
Verified
A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the unit selling price?
A) $200
B) $300
C) $48
D) Cannot be determined.
Contribution Margin
The gap between the income from sales and variable expenses, which serves to offset fixed expenses and produce earnings.
- Utilize the contribution margin along with its ratio to guide decision-making.
Verified Answer
NM
Learning Objectives
- Utilize the contribution margin along with its ratio to guide decision-making.
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