Chulo Ibsen makes and sells hand-forged wrought iron fireplace screens for $125 each.He has determined that his fixed costs are $8,000,and his variable costs per firescreen are $45.What is his fixed cost contribution per screen?
A) $45
B) $80
C) $88.89
D) $125
E) $170

Question

Quizplus · Accepted Answer

The fixed cost contribution per screen is calculated by subtracting the variable cost per screen from the selling price per screen: $125 - $45 = $80.

Chulo Ibsen Makes and Sells Hand-Forged Wrought Iron Fireplace Screens