Orbee Company sells a product for $24. Variable costs are $14 per unit, and total fixed costs are $6,000. What is the per unit contribution margin?
A) $4
B) $10
C) $14
D) $24

Question

Quizplus · Accepted Answer

The contribution margin per unit is calculated as the selling price per unit minus the variable cost per unit.

Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit
Contribution Margin per Unit = $24 - $14
Contribution Margin per Unit = $10

Therefore, the correct answer is B) $10.

Orbee Company Sells a Product for $24