Reference: 18_03
A company's product sells at $12 per unit and has a $5 per unit variable cost. The company's total fixed costs are $98,000.
-The contribution margin per unit is:
A) $5.00
B) $7.00
C) $8.17
D) $12.00
E) $17.00

Question

Quizplus · Accepted Answer

The contribution margin per unit is calculated by subtracting the variable cost per unit from the selling price per unit: $12 - $5 = $7.00.

Reference: 18_03 A Company's Product Sells at $12 Per Unit and Has