Question

The income statement for Elite Manufacturing Company for the current year is as follows: ​ Sales (15,000 units) $180,000 Variable expenses 100,000 Contribution margin $ 80,000 Fixed expenses 60,000 Operating income $ 20,000 ​ ​ What is the contribution margin per unit? (Note: Round answer to two decimal places.)

Answer 1

Answer:

The contribution margin per unit is $5.33

Explanation:

Contribution margin per unit = Contribution margin/Number of units sold                                        

                                                = $80000/15000

                                                = $5.3333

                                                = $5.33

Therefore, The contribution margin per unit is $5.33