Ito Company has provided the following information: $$\begin{array} { | l | r | }
\hline \text { Price per unit } & \$ 42 \
\hline \text { Variable cost per unit } & 16 \
\hline \text { Fixed costs per month } & \$ 25,000 \
\hline
\end{array}$$ Calculate the contribution margin per unit.
A) $26
B) $42
C) $58
D) $10

Question

Ito Company has provided the following information: $$\begin{array} { | l | r | } 
\hline \text { Price per unit } & \$ 42 \
\hline \text { Variable cost per unit } & 16 \
\hline \text { Fixed costs per month } & \$ 25,000 \
\hline
\end{array}$$ Calculate the contribution margin per unit.
A) $26
B) $42
C) $58
D) $10

Quizplus · Accepted Answer

The contribution margin per unit is calculated by subtracting the variable cost per unit from the price per unit. Thus, $42 - $16 = $26.

Ito Company Has Provided the Following Information Calculate the Contribution Margin Per Unit