What is the total contribution margin if a company sells 500 units at a selling

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What’s inside this PDF?

Question: What is the total contribution margin if a company sells 500 units at a selling price of $80 per unit and a variable cost of $50 per unit?

Options:

$15,000
$20,000
$25,000
$30,000

Correct Answer: $20,000

Solution:

Contribution margin per unit = Selling price - Variable cost = $80 - $50 = $30. Total contribution margin = Contribution margin per unit * Number of units sold = $30 * 500 = $15,000.

What is the total contribution margin if a company sells 500 units at a selling

Practice Questions

What is the total contribution margin if a company sells 500 units at a selling price of $80 per unit and a variable cost of $50 per unit?

$15,000
$20,000
$25,000
$30,000

Questions & Step-by-Step Solutions

What is the total contribution margin if a company sells 500 units at a selling price of $80 per unit and a variable cost of $50 per unit?

Step 1: Identify the selling price per unit, which is $80.
Step 2: Identify the variable cost per unit, which is $50.
Step 3: Calculate the contribution margin per unit by subtracting the variable cost from the selling price: $80 - $50 = $30.
Step 4: Identify the number of units sold, which is 500.
Step 5: Calculate the total contribution margin by multiplying the contribution margin per unit by the number of units sold: $30 * 500 = $15,000.

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What is the total contribution margin if a company sells 500 units at a selling

What’s inside this PDF?

What is the total contribution margin if a company sells 500 units at a selling

Practice Questions

Questions & Step-by-Step Solutions

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