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If a company has a contribution margin of $25 per unit and sells 1,200 units, wh
If a company has a contribution margin of $25 per unit and sells 1,200 units, what is the total contribution?
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Practice Questions
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Q1
If a company has a contribution margin of $25 per unit and sells 1,200 units, what is the total contribution?
$30,000
$25,000
$20,000
$15,000
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Total Contribution = Contribution Margin per Unit * Number of Units = $25 * 1,200 = $30,000.
Questions & Step-by-step Solutions
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Q
Q: If a company has a contribution margin of $25 per unit and sells 1,200 units, what is the total contribution?
Solution:
Total Contribution = Contribution Margin per Unit * Number of Units = $25 * 1,200 = $30,000.
Steps: 5
Show Steps
Step 1: Identify the contribution margin per unit, which is given as $25.
Step 2: Identify the number of units sold, which is given as 1,200.
Step 3: Use the formula for total contribution: Total Contribution = Contribution Margin per Unit * Number of Units.
Step 4: Substitute the values into the formula: Total Contribution = $25 * 1,200.
Step 5: Calculate the total contribution: $25 * 1,200 = $30,000.
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