What was the contribution margin per unit?
A) $12.10.
B) $16.60.
C) $17.70.
D) $22.10.CM = [850,000 (20,000 * 20.40)- 110,000]/20,000 = $16.60.

Question

Quizplus · Accepted Answer

Choice B is the best choice because it has the highest contribution margin per unit of $16.60. This means that for every unit sold, the company can contribute $16.60 to covering its fixed costs and generating profit.

What Was the Contribution Margin Per Unit