Ludington Corporation Provides the Following Data from a Recent Period

question 5

Essay

Ludington Corporation provides the following data from a recent period for its manufacture of shoes: variable manufacturing costs, $24,000; variable selling costs, $12,000; and total fixed costs,
$40,000. Sales were $60,000 based on 12,000 units sold during the period. Calculate the contribution margin and the contribution margin ratio.

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Definitions:

Lewis Structures

Diagrammatic methods for representing the bonds between atoms in a molecule and the lone pairs of electrons that may exist.

Elemental Symbol

A one or two-letter abbreviation derived from the element's English or Latin name used to represent an element in chemical formulas.

Lewis Structure

A diagrammatic representation of the bonding between atoms of a molecule and the lone pairs of electrons in the molecule, showing how valence electrons are distributed.

Oxygen Molecule

A diatomic molecule composed of two oxygen atoms (O2), essential for aerobic respiration in animals.