What is the contribution margin per unit if the selling price is $80 and variabl

₹0.0

Question: What is the contribution margin per unit if the selling price is $80 and variable costs are $50?

Options:

Correct Answer: $30

Solution:

Contribution Margin per unit = Selling Price - Variable Costs = $80 - $50 = $30.

What is the contribution margin per unit if the selling price is $80 and variable costs are $50?

What is the contribution margin per unit if the selling price is $80 and variable costs are $50?

Step 1: Identify the selling price. In this case, the selling price is $80.
Step 2: Identify the variable costs. Here, the variable costs are $50.
Step 3: Use the formula for contribution margin per unit, which is: Contribution Margin per unit = Selling Price - Variable Costs.
Step 4: Substitute the values into the formula: Contribution Margin per unit = $80 - $50.
Step 5: Calculate the result: $80 - $50 = $30.
Step 6: The contribution margin per unit is $30.

No concepts available.