Respuesta :
Answer:
The correct option is $18
Explanation:
Contribution margin calculation starts with selling price per unit,then deduct variable cost per unit ,the resulting amount is the contribution margin per unit,which is the contribution towards fixed costs and eventual profit made by one unit of output.
The computation of contribution margin per unit is found below:
selling price                  $34
variable cost per unit          ($16)
contribution margin per unit     $18
Variable cost per unit:
Variable manufacturing costs          $6,000
variable selling and administrative costs $2,000
total variable costs                    $8000
Sales volume =sales/selling price  =$17,000/$34=500
variable cost per unit=total variable cost/volume=$8,000/500=$16
Answer:
Contribution margin per unit is $22
Explanation:
Atlantic company
Income statement
Sales $17,000
Less Variable Manufacturing cost $6,000
Contribution Margin $11,000
Less Fixed Manufacturing cost $1,000
Gross Profit = $10,000
Less Variable selling & admin expense $2,000
Less Fixed selling & admin expense $1,000
Net profit $7,000
Volume = sales divided by unit sales price
= $17,000/34
= 500 units
Contribution Margin per unit = $11,000/500 units
= $22
