84.6k views
4 votes
A company sells its products for $80 per unit and has per-unit variable costs of $30 so the contribution margin per unit per unit is $50.

User Georgio
by
5.2k points

1 Answer

3 votes

Answer:

the contribution margin per unit is $50

Step-by-step explanation:

The computation of the contribution margin per unit is shown below:

Given that

The Selling price per unit is $80

And, the per unit variable cost is $30

Based on the above information

the contribution margin per unit is

= Selling price per unit - variable cost per unit

= $80 - $30

= $50

hence, the contribution margin per unit is $50

User MHS
by
4.5k points