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  • 08-01-2020
  • Business
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LO 3.2A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit?

$30
$50
$80
$110

Respuesta :

ijaz4308
ijaz4308 ijaz4308
  • 09-01-2020

Answer:

$50

Explanation:

The contribution margin per unit of any company's product  can be calculated using the following formula:

Contribution margin per unit=Sale price per unit- Variable cost per unit

In this question

Sale price per unit=$80

Variable cost per unit=$30

Contribution margin per unit=80-30

                                            =$50

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