Question

Goldfarb Company manufactures and sells toasters. Each toaster sells for $23.55 and the variable cost per unit is $16.15. Goldfarb's total fixed costs are $24,800, and budgeted sales are 7,800 units. What is the contribution margin per unit

Answer 1

The contribution margin per unit is $7.4.

What is the contribution margin?

The contribution margin is the percentage of a product's sales revenue that isn't consumed by variable costs and goes toward paying the firm's fixed expenses.

One of the main components of break-even analysis is the idea of contribution margin.

Labor-intensive businesses with limited fixed expenses typically have low contribution margins, whereas capital-intensive, industrial corporations typically have high contribution margins.

Contribution margin per unit = Revenue per Unit ₋ Variable Expenses per Unit.

Contribution margin per unit = $23.55 ₋ $16.15

Contribution margin per unit = $7.4

Therefore, the contribution margin per unit is $7.4.

To know more about contribution margin refer to:  brainly.com/question/14950546

#SPJ4