Chulo Ibsen makes and sells hand-forged wrought iron fireplace screens for $125 each.He has determined that his fixed costs are $8,000,and his variable costs per firescreen are $45.
-Refer to Fireplace Screens.What is Ibsen's fixed cost contribution per screen?
A) $88.89
B) $45
C) $80
D) $125

Question

Quizplus · Accepted Answer

Fixed cost contribution per screen is calculated by subtracting the variable cost per unit from the selling price per unit. Therefore, $125 - $45 = $80.

Chulo Ibsen Makes and Sells Hand-Forged Wrought Iron Fireplace Screens