Question

Company sells a product for $ 45 per unit. Variable costs are $ 35 per​ unit, and fixed costs are $ 2 comma 300 per month. The company expects to sell 560 units in September. Calculate the contribution margin per​ unit, in​ total, and as a ratio. Calculate the contribution margin per unit. Select the formula labels and then enter the amounts to compute the contribution margin per unit. Fixed costs - . ▼

Answer 1

Instructions are listed below

Step-by-step explanation:

Giving the following information:

The company sells a product for $ 45 per unit.

Variable costs are $ 35 per​ unit.

Fixed costs are $ 2300 per month.

The company expects to sell 560 units in September.

A) contribution margin per unit= selling price - variable costs

contribution margin per unit= 45 - 35= $10

B) Total contribution margin= contribution margin*units sold= 10*560= $5600

C) contribution margin ratio= contribution margin/ selling price= 10/45= 0.2222