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:

Hardware

The physical components of a computer system, such as the hard drive, CPU, monitor, and peripherals.

Software

A collection of data or instructions that tell a computer how to work. This is in contrast to hardware, which is the physical arrangement of components that the software runs on.

CD-R

Short for Compact Disc-Recordable, a type of digital storage medium that allows users to record data once and then prevent further alterations.

Record Data

Record data involves documenting and storing information or data collected from experiments, observations, or encounters for analysis and reference.