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Juli2301 [7.4K]
3 years ago
13

Jamara has started a home party business that hosts parties and those attending paint signs. Jamara must pay $500 a year to be a

representative for Paint A Sign. In addition, Jamara buys all the materials for the parties, including the metal base, the paints, brushes, stencils, and transfers. These items all add up to $10 on average. Jamara charges each participant $25 for each sign they make. For Jamara's Paint A Sign business, the gross margin or contribution margin for Jamara's business is:
Business
1 answer:
k0ka [10]3 years ago
8 0

Answer:

Unit contribution margin= $15

Explanation:

Giving the following information:

These items all add up to $10 on average. Jamara charges each participant $25 for each sign they make.

The contribution margin is the result of deducting from the selling price, the unitary variable cost.

Unit contribution margin= selling price - unitary variable cost

Unit contribution margin= 25 - 10

Unit contribution margin= $15

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