The MoneyTalks company produces and sells 125,000 units a year for £50 each.Variable costs are £40 and annual fixed costs are £600,000.
Calculate the contribution per unit.

Name: The MoneyTalks company produces and sells 125,000 units a year for £50 each.Variable costs are £40 and annual fixed costs are £600,000. Calculate the contribution per unit.
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

The contribution per unit is calculated as the selling price per unit minus the variable cost per unit. Here, it's £50 - £40 = £10.

The MoneyTalks Company Produces and Sells 125,000 Units a Year