|
Mark Corporation produces two models of calculators. The Business model sells for $40, and the Math model sells for $20. The variable expenses are given below: |
| Business Model |
Math Model |
|
| Variable production costs per unit | $16 | $17 |
| Variable selling and administrative expenses per unit | $ 8 | $ 5 |
|
The fixed expenses are $76,000 per month. The expected monthly sales of each model are: Business, 1,100 units; Math, 600 units. |
| The contribution margin ratio for the Business model is: (Do not round intermediate calculations.) |
| 56% | |
| 20% | |
| 44% | |
| 40% |