Asked by
Cooper Abramson
on Nov 13, 2024
Verified
Zehms Inc. has a unit contribution margin of $30 and a contribution margin ratio of 60%. How much is the selling price of each unit?
A) $50
B) $75
C) $18
D) Cannot be determined without more information.
Contribution Margin
The selling price per unit minus the variable cost per unit, used to cover fixed costs and contribute to net profit.
Selling Price
The price for which a product or service is sold to the customer.
- Apply the contribution margin and its ratio for making informed decisions.
Verified Answer
AB
Learning Objectives
- Apply the contribution margin and its ratio for making informed decisions.
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