Question

The Haskins Company manufactures and sells radios. Each radio sells for $76.00 and the variable cost per unit is $40.00. Haskin's total fixed costs are $70,000.00, and budgeted sales are 46,000.00 units. What is the contribution margin per unit

Answer 1

The answer is $36.00

Step-by-step explanation:

Contribution margin per unit is when variable cost per unit is subtracted from selling price per unit. Contribution is that part of revenue that was not used by variable costs and was used to cover fixed costs

selling price per unit = $76.00

variable cost per unit = $40.00

Therefore, contribution margin per unit is $76.00 - $40.00

= $36.00