ACC 202 Principles of Accounting 2 Ball State University
ACC 202 Principles of Accounting 2 Ball State University
15th Edition
ISBN: 9781308193977
Author: Noreen, Brewer Garrison
Publisher: MCG/CREATE
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Chapter AB, Problem 5Q
To determine

Relative profitability: Relative profitability of a business and its products/services is a measure of analysing its profits and earnings as compared to the expenses it is incurring.

The information needed to measure the relative profitability of the product.

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If Interval Railway's fixed costs total $40,000 per month, the variable cost per passenger is $30, and tickets sell for $40, what is the contribution margin per unit and contribution margin ratio? a. $30 per passenger, 75% b. $30 per passenger, 25% c. $10 per passenger, 75% d. $10 per passenger, 25%
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