Figure 16 - 1 The Kringel Company provides the following information:

-Refer to Figure 16-1.What is the contribution margin per unit for Kringel?

Question

Figure 16 - 1 The Kringel Company provides the following information:
 
-Refer to Figure 16-1.What is the contribution margin per unit for Kringel?

Quizplus · Accepted Answer

Contribution margin per unit can be calculated using the formula: 
Contribution Margin = Selling price per unit - Variable cost per unit
Here, Selling Price per unit is given as $5.50 and Variable cost per unit is given as $4.25.
Substituting the given values in the formula, we get: 
Contribution Margin = $5.50 - $4.25 = $1.25
Hence, B is the correct choice.

Figure 16 - 1 the Kringel Company Provides the Following