Zapple, Ltd. is producing and distributing a new computer-based game that it sells for $75 a unit. Zapple's fixed costs are $43,750 per month, and the company's accountants have determined that the monthly break-even in units is 1,250. What is the monthly unit variable cost and unit contribution margin for Zapple, Ltd.?

Question

Quizplus · Accepted Answer

The Answer of Zapple, Ltd. is producing and distributing a new computer-based game that it sells for $75 a unit. Zapple's fixed costs are $43,750 per month, and the company's accountants have determined that the monthly break-even in units is 1,250. What is the monthly unit variable cost and unit contribution margin for Zapple, Ltd.?