Question

Lanning Company sells 160,000 units at $45 per unit. Variable costs are $27 per unit, and fixed costs are $975,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio % b. Unit contribution margin $ per unit c. Income from operations

Name: lanning company sells 160000 units at 45 per unit variable costs are 27 per unit and fixed costs are 975000 determine a the contribution margin ratio b the unit contribution margin and c inc 78178
Uploaded: 2022-05-19T22:09:23-08:00
Duration: 4 min 59 s
Channel: Jonathan Tapiwa
Description: lanning company sells 160000 units at 45 per unit variable costs are 27 per unit and fixed costs are 975000 determine a the contribution margin ratio b the unit contribution margin and c inc 78178

          Lanning Company sells 160,000 units at $45 per unit. Variable costs are $27 per unit, and fixed costs are $975,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio % b. Unit contribution margin $ per unit c. Income from operations

Added by Nichole O.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Jonathan Tapiwa

05/19/2022

Step 1

Given: Selling price per unit = $45 Variable cost per unit = $27 Contribution Margin = Selling Price - Variable Cost Contribution Margin = $45 - $27 Contribution Margin = $18 Contribution Margin Ratio = (Contribution Margin / Selling Price) x 100 Contribution Show more…

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Lanning Company sells 160,000 units at $45 per unit. Variable costs are $27 per unit, and fixed costs are $975,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio % b. Unit contribution margin $ per unit c. Income from operations