A company has contribution margin per unit of $90 and a contribution margin ratio of 40%.What is the unit selling price?
A)$150
B)$225
C)$36
D)Cannot be determined.

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as (Contribution Margin per Unit / Selling Price per Unit). Given the contribution margin per unit is $90 and the contribution margin ratio is 40%, the selling price per unit can be calculated as $90 / 0.40 = $225.

A Company Has Contribution Margin Per Unit of $90 and a Contribution