Asked by lyndsey holder on May 27, 2024
Verified
A company manufactures and sells searchlights.Each searchlight sells for $345.The variable cost per unit is $198,and the company's total fixed costs are $635,000.Predicted sales are 15,000 units.What is the contribution margin per unit?
Contribution Margin
The amount by which the sale of a product or service exceeds its variable costs, contributing to covering fixed costs and generating profit.
Variable Cost
A cost that varies directly with the level of production or sales volume.
- Grasp the essentials of unit contribution margin and contribution margin ratio, including their pivotal importance in shaping a company's cost composition.
Verified Answer
ZK
Learning Objectives
- Grasp the essentials of unit contribution margin and contribution margin ratio, including their pivotal importance in shaping a company's cost composition.
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