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Question - McCallen Company expects to produce and sell 500 units in the next month. The data on costs are as follows:
Per-unit costs:
Selling price $8.00
Variable manufacturing costs 2.75
Variable selling costs 0.25
Total costs:
Fixed manufacturing costs $1,000
Fixed selling costs 125
Required -
A. What is the variable cost per unit?
B. What is the contribution margin per unit?
C. What is the variable cost ratio?
D. What is the contribution margin ratio?
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