Assignment Chapter 21 6 Saved Help Seve Exit Subr Check my

Assignment Chapter 21 6 Saved Help Seve & Exit Subr Check my work A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $205 per pair and cost $164 per pair in variable costs to make ok Contribution margin e the contribution margin ratio. Numerator ences Contribution margin ratio

Solution

Ans.1 Contribution margin per pair = Selling price per pair - Variable cost per pair

=. 205 - 164

=. 41

Ans. 2. Contribution margin ratio = Contribution margin per pair / Selling price per pair * 100

=. 41 / 205 * 100

=. 20%