Question

avi sells seashore paintings. His annual Fixed Costs are $1,000 and the Variable Costs are $8 per painting. At a price of $15 a painting, what is the unit contribution ($) per painting sold?

Answer 1

Unitary contribution margin= $7

Step-by-step explanation:

Giving the following information:

Selling price per unit= $15

Unitary variable cost= $8

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

Unitary contribution margin= selling price - unitary variable cost

Unitary contribution margin= 15 - 8

Unitary contribution margin= $7