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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. scenario A is: number of units 1290, sale price per unit 1,400, variable costs per unit 700. Scenario B is: number of units 14,920, sale price 4,500, variable costs per unit 3,600. Scenarios C: number of units 4,620, sale price per unit 5,550, variable costs per unit 1,665. complete the scenarios by entering the contribution margin per unit, Total contribution margin, and contribution margin ratio.

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Answer #1

Solution:-

Particulars Scenario A Scenario B Scenario C Explanation
Contribution margin per unit 700 1,200 3,885 1
Total contribution margin 903,000 17,904,000 17,948,700 2
Contribution margin ratio 50.00% 26.67% 70.00% 3

Explanation 1:-

Particulars Scenario A Scenario B Scenario C
Sale price per unit 1,400 4,500 5,550
Less: Variable cost per unit 700 3,600 1,665
Contribution margin per unit 700 1,200 3,885

Explanation 2:-

Particulars Scenario A Scenario B Scenario C
Contribution margin per unit 700 1,200 3,885
* Number of units sold 1,290 14,920 4,620
Total contribution 903,000 17,904,000 17,948,700

Explanation 3:-

Particulars Scenario A Scenario B Scenario C
Sale price per unit 1,400 4,500 5,550
Contribution margin per unit 700 1,200 3,885
Contirbution / Sales * 100 50.00% 26.67% 70.00%

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