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Ghella [55]
3 years ago
12

The Goldfarb Company manufactures and sells toasters. Each toaster sells for $24.45 and the variable cost per unit is $16.65. Go

ldfarb's total fixed costs are $25,700, and budgeted sales are 8,700 units. What is the contribution margin per unit?
Business
1 answer:
Tasya [4]3 years ago
8 0

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

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