The income statement for Thomas Manufacturing Company for 2011 is as follows: What is the contribution margin per unit?

Name: The income statement for Thomas Manufacturing Company for 2011 is as follows: What is the contribution margin per unit?
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Question

The income statement for Thomas Manufacturing Company for 2011 is as follows:  What is the contribution margin per unit?

Quizplus · Accepted Answer

Contribution margin per unit = Selling price per unit - Variable cost per unit. 
From the income statement, we can calculate the contribution margin per unit as follows: 
Contribution margin per unit = ($35 - $20) = $15. 
Therefore, the correct answer is C.

The Income Statement for Thomas Manufacturing Company for 2011 Is