Exhibit 6-3
Howard Company sells mountain bikes for $1,400 per unit representing 40 percent of total sales,and cruising bikes for $1,000 per unit representing 60 percent of total sales.Variable cost per unit is $600 for mountain bikes and $500 for cruising bikes.
-Refer to Exhibit 6-3.What is the contribution margin per unit for each product?
A) Mountain bikes: $1,400;Cruising bikes: $1,000
B) Mountain bikes: $560;Cruising bikes: $600
C) Mountain bikes: $800;Cruising bikes: $500
D) Mountain bikes: $600;Cruising bikes: $500
E) None of the answer choices is correct.
Correct Answer:
Verified
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