Go to www.YouTube.com and search for How It\'s Made, a television show produced

Question

Go to www.YouTube.com and search for How It's Made, a television show produced by the Discovery Channel that shows how thousands of products and services are created. Find aproduct that you have purchased in the last year, such as a toothbrush, ball point pen, jeans, headphones, candybar etc.

Answer following questions:

1. What product did you choose and how is it made?

2. How much did you pay for this product?

3. What are the major variable costs of making this product?

4. Provide your best guess of the variable cost per unit for this product. You do not need to do extensive research to find out the cost of the inputs, but try to come up with a reasonable estimate.

5. Based on your answers, computer the unit contribution margin and contribution margin ratio.

Explanation / Answer

1)pen 2)5 rs 3)1.50 4)1r 5)contribution margin ratio=sellingprice-variablecost÷selling price , contribution margin per unit=selling price-variable cost.so contribution margin per unit = 5rs-1.50=3.50, c.ratio=.70

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