Carr Company produces a single product. During the past year, Carr manufactured 25,000 units and sold 20,000 units. Production costs for the year were as follows:
-The contribution margin per unit would be:
A)$12.10
B)$22.10
C)$17.70
D)$16.60

Question

Quizplus · Accepted Answer

Variable expenses per unit:
 11eaa48f_7ba4_5ffe_9e4a_c93ea954fea8_TB2485_00 Selling price per unit = $850,000 F1F1F1S1F1F1F10 20,000 units = $42.50 per unit
Unit CM = Selling price per unit - Variable expenses per unit
= $42.50 per unit - $25.90 per unit = $16.60 per unit

Carr Company Produces a Single Product