Red hawk enterprises sells handmade clocks. its variable cost per clock is $8, and each clock sells for $18. calculate red hawk’s unit contribution margin and contribution margin ratio. suppose red hawk sells 2,000 clocks this year. calculate the total contribution margin.

Instructions are listed below

Explanation:

Giving the following information:

Its variable cost per clock is $8.

Each clock sells for $18.

Suppose Red Hawk sells 2,000 clocks this year.

A) contribution margin= selling price - variable costs= 18-8= $10

B) Contribution margin rate= contribution margin/ selling price= 10/18= 0.5556

C= Total contribution margin= units* contribution margin= 2000*10= $20,000

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Step-by-step explanation: