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Compute and interpret the contribution margin ratio

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Question: 1. Compute and interpret the contribution margin ratio using the following data: sales, $150,000; total variable cost, $90,000.

2. Which one of the following is an assumption that underlies cost-volume-profit analysis?

1. All costs have approximately the same relevant range.

2. The selling price per unit must change in proportion to the number of units sold.

3. For costs classified as variable, the costs per unit of output must change constantly.

4. For costs classified as fixed, the costs per unit of output must remain constant.

Reference no: EM131538992

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