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The Income Statement for Thompson Manufacturing Company Is as Follows

Question 39

Multiple Choice

The income statement for Thompson Manufacturing Company is as follows:  Sales (10,000 units)  $150,000 Variable costs 102,000 Contribution margin $48,000 Fixed costs 36,000 Operating income $12,000\begin{array}{lr}\text { Sales }(10,000 \text { units) } & \$ 150,000 \\\text { Variable costs } & 102,000 \\\text { Contribution margin } & \$ 48,000 \\\text { Fixed costs } & 36,000\\\text { Operating income }&\$12,000\end{array} What is the contribution margin per unit?


A) $1.20
B) $4.80
C) $7.20
D) $120,000.00

Correct Answer:

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