Question

Martin Company currently produces and sells 33,000 units of product at a selling price of $15. The product has variable costs of $5 per unit and fixed costs of $43,000. The company earns a total contribution martin of

Answer 1

$330,000

Explanation:

The selling price per unit is $15

The variable cost per unit is $5

Units sold is $33,000

The contribution margin can be calculated as follows

(15-5)×33000

= 10 × 33000

= 330,000

Hence the contribution margin is $330,000