M Studios retails their own brand of camera that they manufacture in their plant for $500. The plant capacity is 1,000 units per month and variable costs are $225 per camera. Total fixed costs for the year are $2.16 million. Calculate the contribution margin per camera.
A) 275
B) 250
C) 225
D) 300
E) 325

Question

Quizplus · Accepted Answer

The contribution margin per camera is calculated by subtracting the variable costs from the selling price. Therefore, $500 - $225 = $275.

M Studios Retails Their Own Brand of Camera That They