Martin Enterprises provides the following information about its single product. What is the contribution margin per unit?

Question

Martin Enterprises provides the following information about its single product.  What is the contribution margin per unit?

Quizplus · Accepted Answer

The contribution margin per unit can be calculated as follows:
Selling price per unit = $27
Variable cost per unit = $24.70 - $6.60 - $2.80 = $15.30
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $27 - $15.30
= $11.70
Therefore, the contribution margin per unit is $11.70 which is closest to option C ($2.30).

Martin Enterprises Provides the Following Information About Its Single Product