Zeke company sells 25,000 units at $21 per unit. variable costs are $10 per unit, and fixed costs are $75,000. the contribution margin ratio and the unit contribution margin are
a. 47% and $11 per unit
b. 53% and $7 per unit
c. 47% and $8 per unit
d. 52% and $11 per unit

d. 52% and $11 per unit

Explanation:

Units sold (n) = 25,000

Selling price (P) = $21

Sales Revenue (S) = $21 x 25,000 = $525,000

Variable costs per unit (VCu) = $10

Total Variable costs = $10 x 25,000 = $250,000

Fixed costs (FC) = $75,000

The contribution margin ratio (CMR) is defined as:

The unit contribution margin (UCM) is the difference between the sales contribution per unit (P) and the variable cost per unit (VCu)

Therefore, the answer is alternative d. 52% and $11 per unit

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;

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