Question

Bob'CPA firm has been asked to calculate the contribution margin for a product. He has been given the following information.

Sales: $57 per unit
Variable Cost: $35 per unit
Fixed costs: $30, 000

what is the contribution margin per unit for this product?

A. $22
B. $30,035
C. $92
D. $29, 943

Answer 1

The correct anwer is A. 22$.

Step-by-step explanation:

The contribution margin is calculated by subtracting variable cost from sale price. Here in the above given question 57 dollars is sale price per unit and 35 dollars is variable cost. Hence subtracting 35 from 57 gives us the final answer i.e. 22$.