Medoc Company provides the following information about its single product. What is the contribution margin per unit?

Question

Medoc Company provides the following information about its single product.  What is the contribution margin per unit?

Quizplus · Accepted Answer

The contribution margin per unit can be calculated as follows: 
Selling price per unit - Variable cost per unit = Contribution margin per unit

$23.50 - $21.10 = $2.40

Therefore, the correct answer is C. 
Option A is incorrect because $0.35 is not listed as a possible answer. 
Option B is incorrect because $11.50 is the total contribution margin for all units produced, not the contribution margin per unit. 
Option D is incorrect because $4.55 is not listed as a possible answer.

Medoc Company Provides the Following Information About Its Single Product