A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $345 per pair and cost $262.20 per pair in variable costs to make. (Round your answers to 2 decimal places.)(1) Compute the contribution margin per pair. (2) Compute the contribution margin ratio.

1.Contribution margin=$82.8

2.Contribution margin ratio=$82.8/$345=0.24

Explanation:

1. The contribution margin per pair of jeans shall be determine through following mentioned formula:

Contribution margin=Sale price of jeans per pair- variable costs of jeans per pair

                                   =$345-$262.20

                                   =$82.8

2. The contribution margin ratio per pair of jeans shall be determine through following mentioned formula:

Contribution margin ratio=Contribution margin/sale price of jeans per pair

Contribution margin ratio=$82.8/$345=0.24

answer; /// i do believe that the above is (true)