What is the contribution margin ratio for danielson

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Reference no: EM13863708

Danielson Inc., sells two types of caviar. Both are widely recognized as quality products throughout its worldwide distribution system, but from time to time the actual mix of the product shifts as tastes change. Currently, Danielson has experienced that its sales mix has been 50 percent sales of product X and 50 percent sales of product Y. The company does not expect that sales mix to change in the near future. Product X has a selling price of $ 70 and a variable cost of $ 28, whereas product Y has a selling price of $ 35 and a variable cost of $7. Danielson has monthly fixed costs of $ 42000. What is the contribution margin ratio for Danielson?

Reference no: EM13863708

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