Perry Corp.has the following data for the current fiscal year:
The weighted-average budgeted contribution margin per unit is:
A)$5.125.
B)$6.375.
C)$6.70.
D)$6.80.
E)$7.00.

Question

Perry Corp.has the following data for the current fiscal year: 
The weighted-average budgeted contribution margin per unit is:
A)$5.125. 
B)$6.375. 
C)$6.70. 
D)$6.80. 
E)$7.00.

Quizplus · Accepted Answer

We don't have exact values for contribution margin per unit or selling price per unit in the question. But we do know that the company has budgeted to sell 60,000 units and generate a total contribution margin of $400,000. Therefore, the budgeted contribution margin per unit can be calculated as:

Budgeted Contribution Margin per Unit = Total Budgeted Contribution Margin / Budgeted Units Sold
= $400,000 / 60,000
= $6.67 (rounded to the nearest cent)

The closest option is C) $6.70. Therefore, the correct answer is C.