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Solnce55 [7]
2 years ago
9

Flannigan Company manufactures and sells a single product that sells for $620 per unit; variable costs are $372. Annual fixed co

sts are $868,000. Current sales volume is $4,370,000. Compute the contribution margin per unit.
Business
1 answer:
pashok25 [27]2 years ago
4 0

Answer:

$248 per unit

Explanation:

Given that

Selling price per unit = $620

Variable cost per unit = $372

Fixed cost = $868,000

Current sales volume = $4,370,000

The formula and the computation of the contribution margin per unit is shown below:

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $620 - $372

= $248 per unit

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