Question

Mandela Manufacturing produces a single product that sells for $140. Variable costs per unit equal $28. The company expects total fixed costs to be $56,000 for the next month at the projected sales level of 1200 units.

What is the Unit Contribution Margin?

Answer 1

The unit contribution margin for Mandela Manufacturing is $112.

Step-by-step explanation:

To calculate the unit contribution margin, you need to subtract the variable costs per unit from the selling price per unit. In this case, the selling price per unit is $140 and the variable costs per unit is $28. So, the unit contribution margin is $140 - $28 = $112.