If blue ridge railway's fixed costs total $50,000 per month, the variable cost per passenger is $ $10, and tickets sell for $50, what is the contribution margin per unit and contribution margin ratio?
Contribution margin per unit = sales- variable cost sales are the tickets sold= 50$ variable cost per passenger = 10$ 50-10= 40$ of Contribution margin per unit
Contribution margin ratio( of total sales) = (Contribution margin÷ sales) x 100= (40/50) x 100 =80%
