Kelsay Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.

-What is the company's unit contribution margin?

Question

Kelsay Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
 
-What is the company's unit contribution margin?

Quizplus · Accepted Answer

Unit contribution margin = Selling price per unit - Variable expenses per unit
= ($2,788,000 ÷ 680,000 units) - (($1,156,000 + $272,000) ÷ 680,000 units)
= ($2,788,000 ÷ 680,000 units) - ($1,428,000 ÷ 680,000 units)
= $4.10 per unit - $2.10 per unit = $2.00 per unit

Kelsay Corporation Has Provided the Following Contribution Format Income Statement