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Contribution Margin Molly Company sells 40,000 units at $14 per unit. Variable costs are
$11.20 per unit, and fixed costs are $59,400. Determine (a) the contribution margin ratio, (b) the
unit contribution margin, and (c) operating income.
a. Contribution margin ratio (Enter as a whole number.) _____%
b. Unit contribution margin (Round to the nearest cent). _____per unit
c. Operating income

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Contribution Margin Molly Company sells 40,000 units at $14 per unit.pdf

  • 1. Contribution Margin Molly Company sells 40,000 units at $14 per unit. Variable costs are $11.20 per unit, and fixed costs are $59,400. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) _____% b. Unit contribution margin (Round to the nearest cent). _____per unit c. Operating income