Question

Sunshine Blender Company sold 3000 units in October at a sales price of $45 per unit. The variable cost is $25 per unit. Calculate the total contribution margin.

Answer 1

Answer:

Total contribution margin= $60,000

Explanation:

Giving the following information:

Units sold= 3,000

Selling price per unit= $45

Unitary variable cost= $25

First, we will calculate the unitary contribution margin:

Unitary contribution margin= 45 - 25= $20

Now, total contribution margin:

Total contribution margin= 3,000*20= $60,000