Avia Company sells a product for $150 per unit.Variable costs are $70 per unit,and fixed costs are $1200 per month.The company expects to sell 640 units in September.The unit contribution margin is ________.

Question

Quizplus · Accepted Answer

Unit contribution margin = selling price per unit - variable costs per unit 
Unit contribution margin = $150 - $70 
Unit contribution margin = $80 
Therefore, the unit contribution margin is $80 per unit.

Avia Company Sells a Product for $150 Per Unit