Tirri Corporation has provided the following information: If the selling price is $26.20 per unit, the contribution margin per unit sold is closest to:
A)$12.65
B)$6.65
C)$15.45
D)$9.70

Question

Tirri Corporation has provided the following information:  If the selling price is $26.20 per unit, the contribution margin per unit sold is closest to:
A)$12.65 
B)$6.65 
C)$15.45 
D)$9.70

Quizplus · Accepted Answer

The contribution margin per unit is calculated as the selling price minus the variable cost per unit. From the information given, we know that the total variable cost per unit is $13.55 (this includes direct materials, direct labor, and variable overhead).

Therefore, the contribution margin per unit is:

$26.20 - $13.55 = $12.65

Option A) is the closest to this value. 11ea7998_5ff0_603e_911b_f140120871dd_TB2627_00_TB2627_00

Tirri Corporation Has Provided the Following Information: If the Selling