Question

A project has expected sales of 15,000 units, plus or minus 4 percent, variable cost per unit of $120 plus or minus 3 percent, fixed costs of $311,000plus or minus 2 percent, and a sales price per unit of $168 plus or minus 2 percent. The depreciation expense is $74,000 and the tax rate is 35 percent. What is the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $122

Answer 1

$46

Step-by-step explanation:

Calculation to determine the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $122

Sales price per unit of $168

Less variable cost per unit ($122)

Contribution margin per unit $46

(168-$122)

Therefore the the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $122 will be $46