High School

We appreciate your visit to Xyz Company sells 20000 units SP per unit is 12 VC per unit is 9 Fixed cost for the period 24000 What is the contribution. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!

Xyz Company sells 20000 units

SP per unit is 12=

VC per unit is 9/=

Fixed cost for the period 24000/=

What is the contribution margin ratio?

Contribution margin per unit?

The income from operation?

Answer :

The contribution margin ratio is 25% (3/12). The contribution margin per unit is 3/= (12 - 9). The income from operation is 24000/=.

The contribution margin ratio is calculated by dividing the contribution margin per unit by the selling price per unit. In this case, the contribution margin per unit is 3/=. Since the selling price per unit is 12/=, the contribution margin ratio is 3/12, which simplifies to 25%.

The contribution margin per unit is the difference between the selling price per unit and the variable cost per unit. Here, the variable cost per unit is 9/=, so the contribution margin per unit is 12 - 9 = 3/=.

The income from operation can be calculated by multiplying the contribution margin per unit (3/=) by the number of units sold (20000) and subtracting the fixed cost for the period (24000/=). Therefore, the income from operation is (3 * 20000) - 24000 = 36000/=.

In summary, the contribution margin ratio is 25%, the contribution margin per unit is 3/=. The income from operation is 36000/=.

learn more about income here:

https://brainly.com/question/30462883

#SPJ11

Thanks for taking the time to read Xyz Company sells 20000 units SP per unit is 12 VC per unit is 9 Fixed cost for the period 24000 What is the contribution. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!

Rewritten by : Barada