Contemporary Corp. sells a single product for $80. Variable costs are 40%% of the selling price, and the company has fixed costs that amount to $500,000. Current sales total 18,000 units. Each unit that Contemporary sells will:
A)contribute to overall profitability by $20.
B)contribute to overall profitability by $32.
C)contribute to overall profitability by $48.
D)contribute to overall profitability by $28.
E)contribute to overall profitability by some other amount.

Question

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The Answer of Contemporary Corp. sells a single product for $80. Variable costs are 40%% of the selling price, and the company has fixed costs that amount to $500,000. Current sales total 18,000 units. Each unit that Contemporary sells will:
A)contribute to overall profitability by $20.
B)contribute to overall profitability by $32.
C)contribute to overall profitability by $48.
D)contribute to overall profitability by $28.
E)contribute to overall profitability by some other amount.