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Zortfyon sa sells two models of their product in russia the

Question - Zortfyon, SA sells two models of their product in Russia, the Budget model and the Luxury model. They have supplied the following data:

Budget Luxury

Selling Price $42 $94

Expected unit sales per month 2500 13000

variable production costs per unit $16 $21

variable selling and admin costs per unit $9 $9

Fixed Expenses are $76,246 per month.

Zortfyons contribution margin ratio for the Budget model is to closest to:

A. 48.53%

B. 54.28%

C. 60.15%

D. 68.09%

E. 40.48%

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Accounting Basics: Zortfyon sa sells two models of their product in russia the

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