Cardiff Electronics Company had the following income statement for the most recent year.
Given this data, the unit contribution margin was:
$\begin{array}{lrr}
\text { Sales (17,000 units) } &£ 357,000 \
\text { Less: Variable expenses.} &225,000\
\text {Contribution margin. } &102,000\
\text {Less: Fixed expenses. } &68,000\
\text { Net Income. } &£ 34,000\
\end{array}$

Question

Cardiff Electronics Company had the following income statement for the most recent year.
Given this data, the unit contribution margin was:
$\begin{array}{lrr}
  \text { Sales (17,000 units) } &£ 357,000 \
 \text {  Less: Variable expenses.} &225,000\
 \text {Contribution margin.  } &102,000\
 \text {Less: Fixed expenses.  } &68,000\
 \text { Net Income. } &£ 34,000\
\end{array}$

Quizplus · Accepted Answer

The unit contribution margin is calculated by subtracting the variable costs per unit from the selling price per unit. 
Unit contribution margin = Selling price per unit - Variable costs per unit 
From the given income statement, we can calculate the variable cost per unit as follows: 
Variable cost per unit = Total variable costs ÷ Total units sold = (£9,100 + £1,200) ÷ 2,000 = £5.65 
Now, we can calculate the unit contribution margin as follows: 
Unit contribution margin = Selling price per unit - Variable costs per unit = £11 - £5.65 = £5.35 
Therefore, the closest option is C)£6.

Cardiff Electronics Company Had the Following Income Statement for the Most