Question

Complete the table below for contribution margin per unit, total contribution margin and contribution margin ratio....

Complete the table below for contribution margin per unit, total contribution margin and contribution margin ratio.

​

Alpha

Beta

Number of units

2,460

12,800

Sales price per unit

$21

$78

Variable costs per unit

$10

$32

Calculate:

​

​

Contribution margin per unit

​

​

Total contribution margin

​

​

Contribution margin ratio

​

​
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Homework Answers

Answer #1

Alpha

Contribution margin per unit = selling price - Variable cost

= 21 - 10

= $11

Total contribution margin

= 2,460*11

= $ 27,060

Contribution margin ratio

Total sales = 2,460*21 = 51,660

= Contribution margin / total sales

= (27,060/51,660)*100

= 52.38%

Beta

Contribution margin per unit

= 78 - 32

= $46

Total contribution margin

= 12,800*46

= $588,800

Contribution margin ratio

Total sales = 12,800*78 = 998,400

= (588,800/998,400)*100

= 58.97%

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