Subject: Business    / Accounting    

Question

    Felton Paper produces paper for textbooks. Felton plans to produce 500,000 cases of paper next quar- ter to sell at a price of $100 per case. Each case costs the company $80 to produce. What is the total contribution margin for next quarter?

    Montross Seating manufactures desk chairs for commercial distribution. Each chair is produced at a cost of $15 and sold for $25. What is the contribution margin ratio for desk chairs?