The following selected data relates to Lazarus Corporation: $$\begin{array} { | l | r | }
\hline \text { Tatal fixed costs } & \$ 22,000 \
\hline \text { Sale price per unit } & \$ 25 \
\hline \text { Variable costs per urit } & \$ 18 \
\hline
\end{array}$$
- Assuming 8,000 units are sold,what is the contribution margin?

Question

The following selected data relates to Lazarus Corporation: $$\begin{array} { | l | r | } 
\hline \text { Tatal fixed costs } & \$ 22,000 \
\hline \text { Sale price per unit } & \$ 25 \
\hline \text { Variable costs per urit } & \$ 18 \
\hline
\end{array}$$
- Assuming 8,000 units are sold,what is the contribution margin?

Quizplus · Accepted Answer

The contribution margin per unit is calculated as the sale price per unit minus the variable cost per unit, which is $25 - $18 = $7. For 8,000 units, the total contribution margin is 8,000 units * $7 = $56,000.

The Following Selected Data Relates to Lazarus Corporation - Assuming 8,000 Units Are Sold,what Is the Contribution Margin