Question

Raj & company has fixed costs of $32,500, its

contribution ratio is 65%, and is selling its
product for $20 per unit. Its contribution margin
per unit is

A. $15
B. $13
C. $18
D. Cannot calculate​

Answer 1

Unitary contribution margin= $13

Step-by-step explanation:

Giving the following information:

Contribution margin ratio= 65%

Selling price per unit= $20

To calculate the unitary contribution margin, we need to use the following formula:

Unitary contribution margin= Contribution margin ratio*selling price

Unitary contribution margin= 0.65*20

Unitary contribution margin= $13