Please answer part D only and show how it was done. Thanks! rin Brushwood sells
ID: 2586968 • Letter: P
Question
Please answer part D only and show how it was done. Thanks!
rin Brushwood sells gourmet chocolate chip cookies. The results of her last month of operations are s follows: Sales revenue Cost of goods sold (all variable) Gross margin $53,550 27,391 26,159 7,516 $ 6,035 e.g.5,275.) 53550 Cost of Goods Sold 27391 150 7565 Selling Expense Total Variable Expenses Contribution Margin Fixed Expenses 36459 17091 Selling Expense Administrative Expense Total Fixed Expenses 6013 5043 11056 6035 If Erin sells her cookies for $1.72 each, how many cookies did she sell during the month? ( answer to the nearest whole number, e.g. 5,275.) 31134 per co 75.) margin per cookie hat is Erin's contribution margin ratio? (Round contribution margin ratio to 2 decimal e.g. 52.75%.) Contribution margin ratio%Explanation / Answer
31.92%......(worked out below in two methods)
d. contribution margin ratio = (total contribution / total sales) *100
=>(17,091 / 53,550)*100
=>31.92%............(rounded to two decimals places).
Alternatively,
contribution margin ratio = contribution per unit / sales price per unit * 100
here,
contribution per unit = $17,091 / 31,134 units =>$0.54894870128
now,
contribution margin ratio = $0.54894870128 / $1.72 * 100
=>31.92%....(rounded to two decimlas).