The records of the Dodge Corporation show the following results for the most recent year: Given these data, the unit contribution margin was:

Question

The records of the Dodge Corporation show the following results for the most recent year:  Given these data, the unit contribution margin was:

Quizplus · Accepted Answer

Selling price per unit = $256, 000 ÷ 16, 000 units = $16 per unit
Variable expense per unit = $160, 000 ÷ 16, 000 units = $10 per unit
Unit CM = Selling price per unit - Variable expense per unit
Unit CM = $16 per unit - $10 per unit = $6 per unit

The Records of the Dodge Corporation Show the Following Results