A business sells a product with variable costs per unit of $30. per period. The selling price per unit is $100. Assuming 1,000 units are sold in a period, what is the contribution margin for the period?
A)$60,000.
B)$30,000.
C)$70,000.
D)$100,000.

Question

Quizplus · Accepted Answer

Contribution margin per unit = Selling price per unit - Variable cost per unit 
= $100 - $30 
= $70

Contribution margin for 1,000 units = Contribution margin per unit * Number of units sold 
= $70 * 1,000 
= $70,000

Therefore, the contribution margin for the period is $70,000.

A Business Sells a Product with Variable Costs Per Unit