The Haskins Company manufactures and sells radios. Each radio sells for $23.75 and the variable cost per unit is $16.25. Haskin's total fixed costs are $25,000, and budgeted sales are 8,000 units. What is the contribution margin per unit?
A) $7.50.
B) $16.25.
C) $23.75.
D) $60,000.
E) $1.25.

Question

Quizplus · Accepted Answer

Contribution margin per unit = Selling price per unit – Variable cost per unit
= $23.75 – $16.25
= $7.50

Therefore, the contribution margin per unit for Haskins Company is $7.50.

The Haskins Company Manufactures and Sells Radios