A project has expected sales of 21,000 units at a price of $14.99, variable costs of $9.03, and fixed costs of $58,590. What is the contribution margin per unit?
A) $2.79
B) $3.17
C) $5.96
D) $9.03
E) $14.99

Question

Quizplus · Accepted Answer

The contribution margin per unit is calculated by subtracting the variable cost per unit from the selling price per unit. Thus, $14.99 - $9.03 = $5.96.

A Project Has Expected Sales of 21,000 Units at a Price