Question

Contribution margin % = 29% If unit selling price is $140 What
is variable cost per unit?

Answer 1

The variable cost per unit is $99.40, which is calculated by subtracting 29% of the $140 selling price from the selling price itself.

Step-by-step explanation:

The variable cost per unit is calculated using the contribution margin percent formula. If the selling price is $140 and the contribution margin % is 29%, then the variable cost per unit can be found by rearranging the contribution margin formula:

Contribution Margin = Selling Price - Variable Cost, therefore Variable Cost = Selling Price - (Contribution Margin % * Selling Price).

Now, placing the numbers into the equation: Variable Cost = $140 - (0.29 * $140) = $140 - $40.60 = $99.40.

The variable cost per unit when the selling price is $140 and the contribution margin % is 29% is $99.40.