Question

The Goldfarb Company manufactures and sells toasters. Each toaster sells for $24.45 and the variable cost per unit is $16.65. Goldfarb's total fixed costs are $25,700, and budgeted sales are 8,700 units. What is the contribution margin per unit?

Answer 1

Answer:

$67860

Explanation:

sell price of each toaster= $24.45

variable cost per unit= $16.65

total fixed cost= $25,700

number of unit sold x= 8700

the formula for contribution margin is

= sales price- variable cost

= (s-v)x

putting values we get

= $(24.45-16.65)\times8700$

= $67860

Hence the contribution margin the above case will be $67860