Crandle Manufacturers Inc.is approached by a potential new customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers.The company has excess capacity.The following per unit data apply for sales to regular customers:

What is the contribution margin per unit?
A)$220
B)$280
C)$500
D)$700

Question

Crandle Manufacturers Inc.is approached by a potential new customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers.The company has excess capacity.The following per unit data apply for sales to regular customers:

What is the contribution margin per unit?

What is the contribution margin per unit?
A)$220 
B)$280 
C)$500 
D)$700

Quizplus · Accepted Answer

Contribution margin per unit = $980 - ($170 + $90 + $135 + $85)= $500