Answer:
Corporate = $60,000 - $33,000 = $27,000
Individual = $ 45,000 - $25,100 = $19,900
Explanation:
Contribution margin is the price of a product minus all variable costs of that product, which shows profit that is earned for each unit sold of that product. It shows how much money is left to help pay for other expenses, other than those incurred in the making of the product, that must be paid in order for the business to be able to continue to operate, for example, rent.
The formula for contribution margin is total sales less variable costs.
Contribution margin per unit = selling price per unit less variable costs per unit.
Total contribution = contribution per unit times number of units sold.
For the question we can calculate as follows:
Contribution for corporate = total sales - total variable costs
= $60,000 - $33,000 = $27,000
Contribution for individual = total sales - total variable costs
= $45,000 - $25,000 = $19,900
