Question

Avia Company sells a product for $150 per unit. Variable costs are $110 per unit, and fixed costs are $1500 per month. The company expects to sell 660 units in September. The unit contribution margin is ________.

Answer 1

"$40 per unit" is the right solution.

Step-by-step explanation:

Given:

Selling price per unit,

= $150

Variable cost per unit,

= $110

Fixed costs per month,

= $1500

The unit contribution margin will be:

=
`Selling \ price - Variable \ cost`

=
`150-110`

=
`40` ($) per unit