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What is the total contribution margin if a company sells 150 units at a contribu

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Question: What is the total contribution margin if a company sells 150 units at a contribution margin of $25 per unit?

Options:

  1. $2,500
  2. $3,000
  3. $3,500
  4. $4,000

Correct Answer: $2,500

Solution: 

Total contribution margin = Contribution margin per unit * Number of units = $25 * 150 = $3,750.

What is the total contribution margin if a company sells 150 units at a contribu

Practice Questions

Q1
What is the total contribution margin if a company sells 150 units at a contribution margin of $25 per unit?
  1. $2,500
  2. $3,000
  3. $3,500
  4. $4,000

Questions & Step-by-Step Solutions

What is the total contribution margin if a company sells 150 units at a contribution margin of $25 per unit?
  • 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 150.
  • Step 3: Multiply the contribution margin per unit by the number of units sold: $25 * 150.
  • Step 4: Calculate the result of the multiplication, which is $3,750.
  • Step 5: The total contribution margin is $3,750.
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