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If a company has a marginal cost of $15 per unit and sells each unit for $25, wh
If a company has a marginal cost of $15 per unit and sells each unit for $25, what is the contribution margin per unit?
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Practice Questions
1 question
Q1
If a company has a marginal cost of $15 per unit and sells each unit for $25, what is the contribution margin per unit?
$10
$15
$25
$5
Show Solution
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Contribution margin per unit is calculated as Selling Price ($25) minus Marginal Cost ($15), which equals $10.
Questions & Step-by-step Solutions
1 item
Q
Q: If a company has a marginal cost of $15 per unit and sells each unit for $25, what is the contribution margin per unit?
Solution:
Contribution margin per unit is calculated as Selling Price ($25) minus Marginal Cost ($15), which equals $10.
Steps: 4
Show Steps
Step 1: Identify the selling price of each unit, which is $25.
Step 2: Identify the marginal cost of each unit, which is $15.
Step 3: Subtract the marginal cost from the selling price: $25 - $15.
Step 4: Calculate the result, which is $10.
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