Question

Pensinger sells 800 units resulting in $9,000 of sales revenue, $3,000 of variable costs, and $1,500 of fixed costs. Contribution margin per unit is ________. (Round the final answer to the nearest cent.) Group of answer choices $11.25 per unit $7.50 per unit $13.75 per unit $5.00 per unit

Answer 1

$7.50

Step-by-step explanation:

Calculation to determine what the Contribution margin per unit is

Using this formula

Contribution margin per unit=Sales revenue-Variable costs/Sales unit

Let plug in the formula

Contribution margin per unit=($9,000 − $3,000) / 800 units

Contribution margin per unit=$6,000/800 units

Contribution margin per unit= $7.50 per unit

Therefore Contribution margin per unit is $7.50