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Karolina [17]
1 year ago
11

Lance, Inc. has sales of 9,000 units. The contribution margin per unit is $32 and fixed costs total $120,000. Lance's profit is

$
Business
1 answer:
Andrews [41]1 year ago
8 0

With sales of 9,000 units, contribution margin per unit of $32 and fixed costs total of $120,000, Lance's profit is $168,000.

<h3><u>What is contribution margin?</u></h3>
  • A gross or per-unit basis might be used to express the contribution margin.
  • It indicates the additional revenue made for each product or unit sold after the variable element of the business's costs have been subtracted.
  • The selling price per unit less the variable cost per unit is the contribution margin.
  • The metric, also known as dollar contribution per unit, shows how a specific product affects the company's overall earnings.

Contribution margin offers a means of demonstrating the potential for profit of a specific product being offered by a business and displays the percentage of sales that goes toward paying the business' fixed costs. Profit is the amount that remains after fixed expenses have been paid.

Number of units sold = 9,000.

Contribution margin per unit = $32.

Expenses = $32 × 9000 = $2,88,000.

Profit = $2,88,000 - $120,000 = $1,68,000.

Know more about contribution margin with the help of the given link:

brainly.com/question/14950546

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Option (d) is correct.

Explanation:

Given that,

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8 0
3 years ago
retailers collect information about purchases in each of their retail outlets, analyze the data that has been gathered, and then
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The buyer reviews the collected data with the manufacturer.

<h3>Who are these retailers, exactly?</h3>

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<h3>What kind of retailer is an example?</h3>

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6 0
1 year ago
carole earns $2.50 for each gadget she completes. what was her gross pay if she completed 145 gadgets last week? a. $362.50 b. $
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362.50
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