Antique Doorknobs

johnson hardware pocket

I'ma bit confused with this task in question and could use some help!?

Speedo Johnson Hardware pocket calculator sells for $ 40. Variable costs per unit is estimated at $ 24. What are the contribution margin per unit and the contribution margin ratio?

First, understand the following 2 definitions: contribution margin = sales - variable costs. coefficient Contribution margin = (sales - variable costs) / sales. as contribution margin / unit = $ (40 - 24) = $ 16 selling x units is left margin ratio Contribution = $ (40x - 24x) / x = $ 16 Note: ------ because the variable cost is linear, there have been calculated d 2nd number, as SHD b obvious that both responses wd bd same

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