The income statement for Symbiosis Manufacturing Company for 2014 is as follows: What is the contribution margin per unit?

Question

The income statement for Symbiosis Manufacturing Company for 2014 is as follows:  What is the contribution margin per unit?

Quizplus · Accepted Answer

Contribution margin per unit can be calculated by subtracting the variable cost per unit from the selling price per unit. In this case, the selling price per unit is $12 and the variable cost per unit is $7.20, so the contribution margin per unit is $12 - $7.20 = $4.80.

The Income Statement for Symbiosis Manufacturing Company for 2014 Is