125 peints MS-16 Calculoting Unit Contribution Margin and Contribution Margin Ra

Question

125 peints MS-16 Calculoting Unit Contribution Margin and Contribution Margin Ratio [LO 5-5) ed Ha nteprises sells handmade clocks ts varlable oost per cdlock is $6.80, and each dlock sels for $13.00 Caiculate Red Hawk's contrbution margin ratio. (Round your contribution margin parcentage ratilo to one declmal places (.e 123 should be entered as 123 Margin Ratio Suppose Red Hawk sells 2.250 clocks this year Calculane the total contribution margin (Round contribution margin per unit to 2 decimal places) Total Contribution Margi acBoo 3 5

Explanation / Answer

Sales - Variable cost = Unit Contribution margin $    13.00 $              6.80 $                                        6.20 Unit contribution margin - Sales = Unit Contribution margin $       6.20 $            13.00 47.7% Sales * Unit contribution margin = Total Contribution margin 2250 $              6.20 $                                   13,950

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