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A company's product sells at $12.26 per unit and has a $5.39 per unit variable cost. The company's total fixed costs are $96,700. The contribution margin per unit is:
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A company's product sells at $12.26 per unit and has a $5.39 per unit variable cost. The company's total fixed costs are $96,700. The contribution margin per unit is:

User Wouter Debie
by
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1 Answer

6 votes

Answer:

$6.87

Step-by-step explanation:

Calculation for what The contribution margin per unit is:

Selling price per unit $12.26

LessVariable cost per unit ($5.39)

Contribution margin per unit $ 6.87

($12.26-$5.39)

Therefore The contribution margin per unit is: $6.87

User Gloweye
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