Jack's Toys sells kites for $20 each. Variable costs are $5 per kite. Fixed costs are $1800 per month. What is the contribution margin per kite?

Name: Jack's Toys sells kites for $20 each. Variable costs are $5 per kite. Fixed costs are $1800 per month. What is the contribution margin per kite?
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Question

Quizplus · Accepted Answer

The contribution margin per kite is calculated by subtracting the variable cost per unit from the selling price per unit. Therefore, $20 - $5 = $15.

Jack's Toys Sells Kites for $20 Each