Question

EA1.

LO 3.1Calculate the per-unit contribution margin of a product that has a sale price of $200 if the variable costs per unit are $65.

Answer 1

$135 per unit

Step-by-step explanation:

The contribution margin per unit is defined as the difference of the sales price per unit and variable cost per unit.

Given that,

Sale price per unit = $200

Variable costs per unit = $65

Contribution margin per unit:

= Sales price per unit - Variable cost per unit

= $200 - $65

= $135 per unit

Therefore, the per-unit contribution margin of a product is $135 per unit.