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Calculate contribution margin ratio for this product. selling price per unit 400 variable cost per unit 100 monthly sales volume 600 fixed expenses per month total 185820?
Wiki User
∙ 16y ago
The first step is to calculate the Unit contribution margin UCM= USP -UVC,
That is, UCM = Unit selling price - Unit Variable price
Therefore here, UCM= 400-100=300
The next step is: Contribution Margin Ratio = UCM/USP
i.e, CMR= 300/400= 0.75 = 75%
Wiki User
∙ 16y ago
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