Question

The firm's fixed costs are $60 000, variable cost per unit is $15 and selling price per unit is $20. The contribution margin per unit is: Group of answer choices $5 $15 $20 $35 g

Answer 1

Answer:

See below

Explanation:

With regards to the above, the contribution margin is computed as;

Contribution margin per unit = Selling price per unit - Variable cost per unit

Selling price per unit = $20

Variable cost per unit = $15

Then,

Contribution margin per unit = $20 - $15

Contribution margin per unit = $5