Question

Menlove Company had the income statement for the most recent year:Sales (17,000 units) ----- $357,000Variable expenses ------- 255,000Contribution margin ---- 102,000Fixed expenses ---------- 68,000Net operation income --- $34,000Given this data, the unit contribution margin was:a. $2 per unitb. $15 per unitc. $6 per unitd. $4 per unit

Answer 1

The correct answer is C.

Step-by-step explanation:

Giving the following information:

Sales (17,000 units)= $357,000

Variable expenses= $255,000

Contribution margin= $102,000

To calculate the unitary contribution margin, we need to divide the total contribution margin for the total number of units sold:

Unitary contribution margin= 102,000/17,000= $6 per unit