problem: 2-23cvp applications; contribution margin ratio degree of operation leverage Lo2-1lo2-3lo2-4lo distributes a high-quality wooden...

60.1K

Verified Solution

Question

Accounting

problem: 2-23cvp applications; contribution margin ratio degree of operation leverage Lo2-1lo2-3lo2-4lo distributes a high-quality wooden birdhouse that sells for $20per unit. variable expenses are $8per unit, and fixed expenses total $180,000per year. its operating results for last year were as follows:
sales $400,000
variable expenses 160,000
contribution margin 240,000
fixed expenses 180,000
net operating income 60,000
what is the products CM ratio?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students