|
contribution margin ratio
|
33%
|
|
Unit contribution margin
|
$8.58 per unit
|
|
Income from operations
|
$174,200
|
Working:
- Contribution margin ratio=contribution margin/Sales
=(8.58/26)=33%
- Contribution margin=Sales-Variable cost
=(26-17.42)=$8.58 per unit
- Contribution margin at 36000 units=($8.58*35000)=$300,300
Less: Fixed cost=$(126,100)
Income from operations=$174,200
