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drek231 [11]
3 years ago
14

Avia Company sells a product for $150 per unit. Variable costs are $70 per unit, and fixed costs are $1200 per month. The compan

y expects to sell 640 units in September. The unit contribution margin is ________. $150 per unit $70 per unit $220 per unit $80 per unit
Business
1 answer:
Leya [2.2K]3 years ago
4 0

Answer:

$80 per unit

Explanation:

Data provided in the question:

Per unit selling cost of the product = $150

Per unit variable cost of the product = $70

Total fixed cost per month = $1200

Now,

The unit contribution margin is calculated as:

unit contribution margin = Selling price per unit - Variable cost per unit

Thus,

unit contribution margin = $150 - $70

or

unit contribution margin = $80 per unit

Hence,

The correct answer is option $80 per unit

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