Answer the following questions using the information below:
Northenscold Company sells several products. Information of average revenue and costs is as follows:

-The contribution margin per unit is:
A)$6
B)$8
C)$12
D)$14

Question

Answer the following questions using the information below:
Northenscold Company sells several products. Information of average revenue and costs is as follows:
 
-The contribution margin per unit is:
A)$6 
B)$8 
C)$12 
D)$14

Quizplus · Accepted Answer

The best choice is the product with the highest contribution margin per unit, which is $12. This means that for each unit sold, the company earns $12 to contribute towards covering fixed costs and generating a profit. Products with lower contribution margins may not be as profitable or may even result in a loss. Therefore, product C is the best choice to focus on for Northenscold Company.

Answer the Following Questions Using the Information Below