Given the equation $500X = $300X + $200,000, per-unit contribution margin is:

Question

Quizplus · Accepted Answer

Per-unit contribution margin is the difference between the selling price and variable cost per unit. In this equation, $300X is the variable cost and $200,000 is the fixed cost. By simplifying the equation, we get:

$500X - $300X = $200,000
$200X = $200,000
X = 1000

Therefore, the selling price per unit is $500 and the variable cost per unit is $300. The per-unit contribution margin is thus:

$500 - $300 = $200

Given the Equation $500X = $300X + $200,000, Per-Unit Contribution