Compute the contribution-margin ratio


Explosion Company produces one type of product. Total fixed costs are $100,000. Unit variable costs are $6.00. The break-even point is 25,000 units. Planned unit sales are 30,000. A) Compute the selling price per unit. B) Compute the contribution-margin ratio. C) Compute the break-even volume in dollars.

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Accounting Basics: Compute the contribution-margin ratio
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