8. Both Samsung and Apple sell smartphones. Assume the following data are available for a...
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Accounting
8. Both Samsung and Apple sell smartphones. Assume the following data are available for a popular smartphone model of each company.
Samsung
Apple
Selling price per unit
$720
$650
Variable cost per unit
$288
$221
a) Compute the contribution margin ratio for each model.
b) Based on the contribution margin ratio, which companys smartphone sales contribute more to covering fixed costs? Explain your answer. (Minimum 45 words)
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