ECO, SRL sells two models of their product in Afghanistan, the Type B model and the Type A model. They have supplied the following data: Type BType ASelling Price$ 48$ 99Expected Unit Sales per month2,00011,000Variable Production costs per unit$ 16$ 22Variable selling and administrative costs per unit$ 10$ 12Fixed Expenses are $51,569 per month. ECO's contribution margin ratio for the Type A model is to closest to:Select one:A.59.70%B.55.74%C.51.39%D.65.66%E.45.83%

Formulas: Contribution margin ratio = (Contribution margin / Net sales) x 100 where, Contribution…

Answered: ECO, SRL sells two models of their…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ECO, SRL sells two models of their product in Afghanistan, the Type B model and the Type A model. They have supplied the following data:

	Type B	Type A
Selling Price	$ 48	$ 99
Expected Unit Sales per month	2,000	11,000
Variable Production costs per unit	$ 16	$ 22
Variable selling and administrative costs per unit	$ 10	$ 12

Fixed Expenses are $51,569 per month.

ECO's contribution margin ratio for the Type A model is to closest to:

Select one:

59.70%

55.74%

51.39%

65.66%

45.83%

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