Based on the fixed costs of the Rocky Mountain Bottling Company, the contribution margin per unit is $0.40 per unit
<h3>How is the contribution margin found?</h3>
First, find the variable costs:
= 300,000 + (250,000 - 70,000)
= $480,000
The contribution margin per unit is:
= (Sales - variable costs) / number of units
= (800,000 - 480,000) / 800,000
= $0.40 per unit
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