Calculate contribution margin ratio and variable cost ratio

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Problem - Suppose that Larimer Company sells a product for $24. Unit costs are as follows: Total fixed factory overhead is $26,500 per year, and total fixed selling and administrative expense is $15,260.

Required -

Calculate the variable cost per unit and the contribution margin per unit.

Calculate the contribution margin ratio and the variable cost ratio.

Calculate the break-even units.

Prepare a contribution margin income statement at the break-even number of units.

Reference no: EM132700250

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