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A. al manara company sells its single product for $ 30 per unit . the contribution margin ratio is 45%; and fixed costs are $ 10,000 per month.
required
if al manara sells 1,000 units in the current month, what would al manara’s variable expenses be?

Respuesta :

Parrain

Based on the contribution margin ratio of the product, the variable expenses for the current month for Al Manara Company would be $16,650.

What are the variable expenses?

The variable expenses per unit can be found as:

= Selling price x (1 - Contribution margin ratio)

= 30 x ( 1 - 45%)

= 30 x 0.55

= $16.50

The total variable expenses are:

= 1,000 x 16.50 per unit

= $16,650

Find out more on the contribution margin at https://brainly.com/question/24039258.

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