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Irina18 [472]
3 years ago
7

3. Hayden Company currently sells widgets for $160 per unit. The variable cost is $60 per unit and total fixed costs equal $240,

000 per year. Sales are currently 40,000 units annually, and the income tax rate is 40 percent. Required: a. Calculate the contribution margin per unit.
Business
1 answer:
notsponge [240]3 years ago
4 0

Answer:

The contribution margin per unit is $100

Explanation:

The computation of the contribution margin per unit is shown below:

The Contribution margin per unit is

= Selling price per unit - variable cost per unit

= $160 - $60

= $100

hence, the contribution margin per unit is $100

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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