The contribution margin per unit is closest to:

A) $15.00
B) $0.50
C) $45.00
D) $60.00

Question

The contribution margin per unit is closest to:A) $15.00B) $0.50C) $45.00D) $60.00

gadivhana talifhani · Accepted Answer

Final Answer : A, Explanation :    Alternatively,   Contribution margin per unit is calculated by subtracting the variable costs per unit from the selling price per unit. The variable costs per unit are given as $35 - $20 - $10 = $5. Therefore, the contribution margin per unit is $35 - $5 = $30.Thus, the closest value to the contribution margin per unit is $15.00, which is half of the actual contribution margin per unit.Therefore, the correct answer is A) $15.00.

The contribution margin per unit is closest to:

A) $15.00
B) $0.50
C) $45.00
D) $60.00

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