Question

For a manufacturing company, selling price for an item is $480.00 per Unit, Variable cost is $248.00 per Unit, rent is $7,480.00 per month and insurance is $3000 per month. What is the contribution margin

Answer 1

Answer: $232

Step-by-step explanation:

The Contribution margin of a business refers to the amount left from it's sales after the variable costs have been accounted for.

It can be calculated by the formula:

= Selling price per unit - Variable cost per unit

= 480 - 248

= $232