Refer to the Stealth Software Inc. information below.
Stealth Software Inc.
Stealth Software Inc. has the following information available from last year for one of its software products:
$\begin{array}{lr}
\text { Sales revenue } & \$ 30000 \
\text { Variable costs } & 4950 \
\text { Fixed costs } & 4000 \
\text { Net income } & \$ 21050
\end{array}$
-If the software had a sales price of $30 per unit,what is the contribution margin per unit?

Question

Quizplus · Accepted Answer

The contribution margin per unit is calculated by subtracting the variable cost per unit from the sales price per unit. Given the sales price of $30 per unit and the total variable costs of $4950, we first need to find the number of units sold. This can be done by dividing the total sales revenue ($30000) by the sales price per unit ($30), which gives us 1000 units sold. Then, the variable cost per unit is $4950 / 1000 = $4.95. Subtracting this from the sales price per unit ($30 - $4.95) gives us a contribution margin per unit of $25.05.

Refer to the Stealth Software Inc -If the Software Had a Sales Price of $30 Per