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business 1 000 units math 500 units 635689

Mark Corporation produces two models of calculators. The Business model sells for $60, and

the Math model sells for $40. The variable expenses are given below:







Variable production costs per unit



Variable selling and administrative expenses per unit



The fixed expenses are $75,000 per month. The expected monthly sales of each model are:

Business, 1,000 units; Math, 500 units.

The contribution margin ratio for the Business model is:

A) 40 percent

B) 75 percent

C) 85 percent

D) 60 percent

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