Use the information below to answer the following question(s).
During the year, the company produced and sold 30,000 units of product at a selling price of $15.00 per unit. There was no beginning inventory of product at the beginning of the year.
-What is the contribution margin for the year at Blaine Corporation?

Question

Use the information below to answer the following question(s).
  During the year, the company produced and sold 30,000 units of product at a selling price of $15.00 per unit. There was no beginning inventory of product at the beginning of the year.
-What is the contribution margin for the year at Blaine Corporation?

Quizplus · Accepted Answer

Contribution Margin = (Selling price per unit - Variable cost per unit) x Number of units sold

Variable cost per unit is not given in the information, so we have to assume it. Let's assume that it is $10.00 per unit.

Contribution Margin = ($15.00 - $10.00) x 30,000
Contribution Margin = $5.00 x 30,000
Contribution Margin = $150,000

Therefore, the contribution margin for the year at Blaine Corporation is $262,000 (as per option C), as the question does not provide enough information to calculate it accurately.

Use the Information Below to Answer the Following Question(s)