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Alina [70]
3 years ago
10

A company's product sells at $12 per unit and has a $5 per unit variable cost. The company's total fixed costs are $98,000. The

contribution margin per unit is:
Business
1 answer:
lara31 [8.8K]3 years ago
6 0

Answer:

The contribution margin per unit is $7

Explanation:

The contribution margin per unit can be defined as the difference between the selling price per unit and the variable cost per unit.

Contribution margin per unit = Selling price - Variable cost

Contribution margin per unit = $12 - $5

Contribution margin per unit = $7

The contribution margin per unit is $7

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