Question

Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 24,800 Variable expenses 13,600 Contribution margin 11,200 Fixed expenses 7,728 Net operating income $ 3,472 Foundational 5-1 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.)

Answer 1

11.2 per unit

Step-by-step explanation:

Oslo Company

Contribution margin per unit =

(Sales - Variable Expenses) / Sales volume

= (24,800 - 13,600) / 1,000

= 11,200 / 1,000

= 11.2 per unit

Therefore the contribution margin per unit is 11.2