Hello,
I have to figure sales price per unit given unit variable expenses, total fixed expenses, and contribution margin ratio. Can you please let me know how I figure sales price per formula?
Thank you for your help!
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Hello,
I have to figure sales price per unit given unit variable expenses, total fixed expenses, and contribution margin ratio. Can you please let me know how I figure sales price per formula?
Thank you for your help!
The contribution margin ratio M is the ratiowhere P and V denote the unit Price and unit Variable cost, respectively.
Since you're given M and V, you can derive P from the equation.
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