Young Company has provided the following information: $$\begin{array} { | l | r | }
\hline \text { Price per unit } & \$ 40 \
\hline \text { Variable cost per unit } & 12 \
\hline \text { Fixed costs per month } & \$ 10,000 \
\hline
\end{array}$$ Calculate the contribution margin per unit.

Question

Young Company has provided the following information: $$\begin{array} { | l | r | } 
\hline \text { Price per unit } & \$ 40 \
\hline \text { Variable cost per unit } & 12 \
\hline \text { Fixed costs per month } & \$ 10,000 \
\hline
\end{array}$$ Calculate the contribution margin per unit.

Quizplus · Accepted Answer

The contribution margin per unit can be calculated as follows:

Contribution Margin per unit = Price per unit - Variable cost per unit 
                                 = $40 - $12 
                                 = $28

Therefore, the correct answer is A) $28.

Young Company Has Provided the Following Information Calculate the Contribution Margin Per Unit