Trillium, Inc. reports the following information for April: $$\begin{array} { | l | r | r | }
\hline & \text { Alpha } & \text { Beta } \
\hline \text { Units sold } & 4000 \text { units } & 700 \text { units } \
\hline \text { Sales price per unit } & \$ 300 & \$ 700 \
\hline \text { Variable manufacturing cost per unit } & 200 & 500 \
\hline \text { Sales commission per unit: } & & \
\hline \text { Alpha: } 4 \% \text { of sales price } & 12 & \
\hline \text { Beta: } 8 \% \text { of sales price } & & 56 \
\hline
\end{array}$$ What is the contribution margin ratio of Beta? (Round your answer to two decimal places.)
A) 28.57%
B) 20.57%
C) 33.33%
D) 8.00%

Question

Trillium, Inc. reports the following information for April: $$\begin{array} { | l | r | r | } 
\hline & \text { Alpha } & \text { Beta } \
\hline \text { Units sold } & 4000 \text { units } & 700 \text { units } \
\hline \text { Sales price per unit } & \$ 300 & \$ 700 \
\hline \text { Variable manufacturing cost per unit } & 200 & 500 \
\hline \text { Sales commission per unit: } & & \
\hline \text { Alpha: } 4 \% \text { of sales price } & 12 & \
\hline \text { Beta: } 8 \% \text { of sales price } & & 56 \
\hline
\end{array}$$ What is the contribution margin ratio of Beta? (Round your answer to two decimal places.)
A) 28.57%
B) 20.57%
C) 33.33%
D) 8.00%

Quizplus · Accepted Answer

The contribution margin per unit for Beta is calculated as the sales price per unit ($700) minus the variable manufacturing cost per unit ($500) and the sales commission per unit ($56), which equals $144. The contribution margin ratio is then $144 divided by the sales price per unit ($700), which equals 0.2057 or 20.57%.

Trillium, Inc What Is the Contribution Margin Ratio of Beta? (Round Your