Answer the following question(s)using the information below.Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers.Welch Manufacturing has excess capacity.The following per unit data apply for sales to regular customers:

-What is the contribution margin per unit?
A)$85
B)$110
C)$145
D)$160
E)$195

Question

Answer the following question(s)using the information below.Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers.Welch Manufacturing has excess capacity.The following per unit data apply for sales to regular customers:
 
-What is the contribution margin per unit?
A)$85 
B)$110 
C)$145 
D)$160 
E)$195

Quizplus · Accepted Answer

Contribution margin per unit = Selling price per unit - Variable cost per unit= $250 - $105= $145

Answer the Following Question(s)using the Information Below