22 use the following information to determine the contribution margin ratio: unit sales 50,000 units unit…

22 use the following information to determine the contribution margin ratio: unit sales 50,000 units unit selling price $ 14.50 unit variable cost $ 7.50 fixed costs $ 204,000 multiple choice 6.9% 48.3% 24.5% 51.7% 34.1%

22 use the following information to determine the contribution margin ratio: unit sales 50,000 units unit selling price $ 14.50 unit variable cost $ 7.50 fixed costs $ 204,000 multiple choice 6.9% 48.3% 24.5% 51.7% 34.1%

Answer

Explanation:

Step1: Calculate contribution margin per unit

Contribution margin per unit = Unit selling price - Unit variable cost $14.50 - 7.50=$7$

Step2: Calculate contribution margin ratio

Contribution margin ratio = (Contribution margin per unit / Unit selling price) × 100% $\left(\frac{7}{14.50}\right)\times100%\approx48.3%$

Answer:

48.3%