Question

Calculate the per-unit contribution margin of a product that has a sale price of $150 if the variable costs per unit are $40.

Answer 1

$110

Step-by-step explanation:

Contribution margin per unit refers to the amount of money per unit to cater for fixed costs and profits.

It is calculated by subtracting variable costs from the selling price.

I.e., contribution margin = sales price per unit - variable cost per unit

in this case

Contribution margin= $150- $40

=$110