Raji custom-makes and sells dress shoes for $300 per pair. This past month, Raji sold 50 pairs of shoes. Raji knows his total cost for variable expenses was $5,000 for the month.What was Raji's contribution margin per pair of shoes made?a.) $60b.) $100a) $350d.) $200
Q. Raji custom-makes and sells dress shoes for $300 per pair. This past month, Raji sold 50 pairs of shoes. Raji knows his total cost for variable expenses was $5,000 for the month.What was Raji's contribution margin per pair of shoes made?a.) $60b.) $100a) $350d.) $200
Calculate Total Revenue: Determine the total revenue from selling the shoes.Raji sold 50 pairs of shoes at $300 per pair.Total revenue = Number of pairs sold × Price per pairTotal revenue = 50×$300Total revenue = $15,000
Find Contribution Margin Total: Calculate the contribution margin in total. Contribution margin = Total revenue - Variable expenses Contribution margin = $15,000−$5,000 Contribution margin = $10,000
Calculate Contribution Margin Per Pair: Calculate the contribution margin per pair of shoes. Contribution margin per pair = Total contribution margin ÷ Number of pairs sold Contribution margin per pair = $10,000÷50 Contribution margin per pair = $200
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