Question

green manufacturing company produces a product that has a variable cost of $30 per unit. fixed costs amount to $240,000. the selling price of the product is $36. the contribution margin per unit is: multiple choice $66. $36. $30. none of these choices are correct.

Answer 1

The contribution margin per unit for the product produced by Green Manufacturing Company is $6, calculated as the selling price of $36 per unit minus the variable cost of $30 per unit.

Step-by-step explanation:

The question pertains to calculating the contribution margin per unit for a product produced by Green Manufacturing Company. The contribution margin per unit is the difference between the selling price per unit and the variable cost per unit. In this scenario, the Green Manufacturing Company has a selling price of $36 per unit and a variable cost of $30 per unit, which means that the contribution margin per unit would be $36 minus $30, equaling $6 per unit.