A division sold 200,000 calculators during 2019: $\begin{array}{l}\text { Sales }&&\$2,000,000\
\text { Variable costs: }\
\text { Materials } & \$ 380,000 \
\text { Order processing } & 150,000 \
\text { Billing labor } & 110,000 \
\text { Selling expenses } & 60,000\
\text { Total variable costs }&&700,000\
\text { Fixed costs }&&1,000,000
\end{array}$ How much is the unit contribution margin?

Question

Quizplus · Accepted Answer

The unit contribution margin is calculated as (Sales - Variable Costs) / Number of Units. Here, it's ($2,000,000 - $700,000) / 200,000 = $1,300,000 / 200,000 = $6.50 per unit.

A Division Sold 200,000 Calculators During 2019 How Much Is the Unit Contribution Margin? A) $1

A Division Sold 200,000 Calculators During 2019 How Much Is the Unit Contribution Margin?
A) $1