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What is the contribution margin ratio

    Assignment Instructions

    Assignment ID: FG133056751

    Questions –

    Q1. Rand Corporation sells perfume bottles. Variable costs for this product are $30 per unit, and the sales price per unit is $50 per unit. Total fixed costs amount to $100,000. How many perfume bottles does Rand need to sell to achieve a desired profit of $50,000?

    a. 5,000 units

    b. 7,500 units

    c. 1,000 units

    d. 2,000 units

    Q2. For Stone Hill Bottling Company, the production manager’s salary is an example of:

    a. a variable cost.

    b. a fixed cost.

    c. a mixed cost.

    d. none of these

    Q3. Company F sells one product that has a sales price of $20 per unit, variable costs of $12 per unit, and total fixed costs of $200,000, what is the contribution margin ratio?

    a. 40%

    b. 60%

    c. 50%

    d. 66%

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