A recent income statement of Black Corporation reported the following data:
If these data are based on the sale of 20,000 units,the contribution margin per unit would be:

Question

A recent income statement of Black Corporation reported the following data: 
If these data are based on the sale of 20,000 units,the contribution margin per unit would be:

Quizplus · Accepted Answer

The contribution margin per unit can be calculated by subtracting the variable costs per unit from the selling price per unit. 
The total revenue based on the sale of 20,000 units is $3,200,000 (20,000 x $160). The total variable costs based on the sale of 20,000 units is $1,200,000 (20,000 x $60). 
So the contribution margin per unit is:
($3,200,000 - $1,200,000) / 20,000 = $100 
Therefore, the best answer choice is B, $150, which is not listed as an option.

A Recent Income Statement of Black Corporation Reported the Following