Question: If the selling price per unit is $15 and the variable cost per unit is $5, what is the contribution margin per unit?
Options:
$10
$5
$15
$0
Correct Answer: $10
Solution:
Contribution margin per unit = Selling price - Variable cost = $15 - $5 = $10.
If the selling price per unit is $15 and the variable cost per unit is $5, what
Practice Questions
Q1
If the selling price per unit is $15 and the variable cost per unit is $5, what is the contribution margin per unit?
$10
$5
$15
$0
Questions & Step-by-Step Solutions
If the selling price per unit is $15 and the variable cost per unit is $5, what is the contribution margin per unit?
Step 1: Identify the selling price per unit, which is $15.
Step 2: Identify the variable cost per unit, which is $5.
Step 3: Use the formula for contribution margin per unit: Contribution margin = Selling price - Variable cost.
Step 4: Substitute the values into the formula: Contribution margin = $15 - $5.
Step 5: Calculate the result: $15 - $5 = $10.
Contribution Margin – The contribution margin per unit is the amount that each unit sold contributes to covering fixed costs and generating profit, calculated as the difference between the selling price and variable cost.
Soulshift Feedback×
On a scale of 0–10, how likely are you to recommend
The Soulshift Academy?
