The income statement for Symbiosis Manufacturing Company for 2016 is as follows: What is the contribution margin per unit?

Question

The income statement for Symbiosis Manufacturing Company for 2016 is as follows:  What is the contribution margin per unit?

Quizplus · Accepted Answer

The contribution margin per unit can be calculated using the formula:
Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit
From the income statement, Selling Price per Unit = $12 and Variable Cost per Unit = $7.20 + $0.80 = $8
Therefore, Contribution Margin per Unit = $12 - $8 = $4.
Hence, the correct answer is C.

The Income Statement for Symbiosis Manufacturing Company for 2016 Is