Calculate the margin per unit if 250,000 units generates a gross profit of $50 million.
A)$2,000
B)$125
C)$1,250
D)$200
E)$500

Question

Quizplus · Accepted Answer

Calculating the margin per unit involves dividing the gross profit by the number of units sold. Therefore:

Margin per unit = Gross Profit / Units sold
Margin per unit = $50,000,000 / 250,000 units
Margin per unit = $200

Therefore, the margin per unit is $200. Option D is the correct answer.

Calculate the Margin Per Unit If 250,000 Units Generates a Gross