Question

Marc Company sells a product for $20, incurs a variable cost of $12 per unit, and has total fixed costs of $6,000. What is the per-unit contribution margin?

Answer 1

The per-unit contribution margin is $8.

Step-by-step explanation:

The per-unit contribution margin can be calculated by subtracting the variable cost per unit from the selling price per unit. In this case, the selling price is $20 and the variable cost is $12 per unit. Therefore, the per-unit contribution margin is $20 - $12 = $8.