Question

Lin Corporation has a single product whose selling price is $135 per unit and whose variable expense is $81 per unit. The company's monthly fixed expense is $24,300. What is the contribution margin per unit?

Answer 1

The contribution margin per unit for Lin Corporation is $54, calculated by subtracting the variable expense per unit ($81) from the selling price per unit ($135).

Step-by-step explanation:

The contribution margin per unit is calculated by subtracting the variable expense per unit from the selling price per unit. For Lin Corporation, the selling price per unit is $135 and the variable expense per unit is $81. Therefore, the contribution margin per unit is $135 - $81 = $54 per unit.To calculate the contribution margin per unit, we need to subtract the variable expense per unit from the selling price per unit. In this case, the selling price per unit is $135 and the variable expense per unit is $81. Therefore, the contribution margin per unit is $135 - $81 = $54.The contribution margin per unit for Lin Corporation is $54, calculated by subtracting the variable expense per unit ($81) from the selling price per unit ($135).