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Bess [88]
4 years ago
7

The following report reflects numerical data for Polar Corporation in July: Sales $27,000 Variable costs $11,880 Fixed costs $7,

000 What is the contribution margin per unit if 10,800 units were sold in July?
Business
1 answer:
77julia77 [94]4 years ago
7 0

Answer:

$1.40

Explanation:

The total contribution margin is determined by deducting variable costs from sales during the period:

CM = \$27,000 -\$11,880\\CM = \$15,120

Assuming a production of 10,800 units, the contribution margin per unit is:

CM_u = \frac{\$15,120}{10,800}\\CM_u =\$1.40

The contribution margin per unit in July is $1.40.

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A division has the following data: Sales $320,000, Variable costs $200,000, and Fixed costs $140,000. If the division were elimi
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