Kelsay Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. The contribution margin per unit is closest to:

Question

Kelsay Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.  The contribution margin per unit is closest to:

Quizplus · Accepted Answer

The contribution margin per unit can be calculated by subtracting the variable cost per unit from the selling price per unit.

Contribution margin per unit = Selling price per unit - Variable cost per unit

Using the information from the income statement, we can calculate the contribution margin per unit as follows:

$45 - $30 - $0 = $15

Therefore, the closest answer to the contribution margin per unit is A) $15.00.

Kelsay Corporation Has Provided the Following Contribution Format Income Statement