crazyhorse
May 27, 2006, 07:48 PM
A title manufacturer has supplied the following data:
Boxes of tiles produced and sold 240,000
Sales revenue $1,128,000
Variable manufacturing expense 456,000
Fixed manufacturing expense 320,000
Variable selling and administrative expense 156,000
Fixed selling and administrative expense 96,000
Net operating income $100,000
a) What is the company’s unit contribution margin?
b) What is the company’s contribution margin ratio?
Boxes of tiles produced and sold 240,000
Sales revenue $1,128,000
Variable manufacturing expense 456,000
Fixed manufacturing expense 320,000
Variable selling and administrative expense 156,000
Fixed selling and administrative expense 96,000
Net operating income $100,000
a) What is the company’s unit contribution margin?
b) What is the company’s contribution margin ratio?