Suppose ADJ Corporation's break-even sales volume is $450,000 with fixed costs of $200,000. (a) Compute the contribution margin percentage. (b) Compute the selling price if the variable costs are $12 per unit.
Added by Vanesa B.
Step 1
- Contribution Margin = Sales - Variable Costs - Contribution Margin = $450,000 - $200,000 = $250,000 - Contribution Margin Percentage = (Contribution Margin / Sales) * 100 - Contribution Margin Percentage = ($250,000 / $450,000) * 100 = 55.56% Show more…
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