Homework Answers
Answer
- Requirement [a]
>Contribution margin = ($ 200 x
(100% - 67%)) x 620 clients
= (200 x 33%) x 620
= $ 66 x 620
= $ 40,920
>Contribution margin per unit = $
40920 / 620 clients
= $ 66
>Contribution margin ratio =
($66/$200) x 100
= 33%
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