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Nastasia [14]
3 years ago
12

Green Manufacturing Company produces a product that has a variable cost of $30 per unit. Fixed costs amount to $240,000. The sel

ling price of the product is $36. The contribution margin per unit is:
Business
1 answer:
Lelu [443]3 years ago
6 0

Answer:

The contribution margin per unit is $6.

Explanation:

Contribution margin is calculated by deducting all variable costs from the price of the product. It is used to calculate the products direct contribution in the earnings.

Price of product = $36 per unit

Cost of product = $30 per unit

Contribution margin = Price - cost

Contribution margin = $36 - $30

Contribution margin = $6 per unit

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