At a volume of 20,000 units, Almount Industries reported sales revenues of $1,000,000, variable costs of $300,000, and ﬁxed costs of $260,000.The company's contribution margin per unit is:

Question

Quizplus · Accepted Answer

Contribution margin per unit = (Sales revenue per unit - Variable cost per unit)
= ($1,000,000 / 20,000) - ($300,000 / 20,000) 
= $50 - $15 
= $35. Therefore, the contribution margin per unit is $35.

At a Volume of 20,000 Units, Almount Industries Reported Sales