A firm with $50,000 in fixed costs, selling price of $25 per unit, and variable costs of $5 a unit has a contribution margin of:
A) $20.
B) $25.
C) $30.
D) $2000.

Name: A firm with $50,000 in fixed costs, selling price of $25 per unit, and variable costs of $5 a unit has a contribution margin of: A) $20. B) $25. C) $30. D) $2000.
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Question

Quizplus · Accepted Answer

The contribution margin is calculated as the selling price per unit minus the variable cost per unit, which is $25 - $5 = $20.

A Firm with $50,000 in Fixed Costs, Selling Price of $25