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Makovka662 [10]
3 years ago
11

RJ Miller Manufacturing Company produces a product that sells for $120. A selling commission of 10% of the selling price is paid

on each unit sold. Variable manufacturing costs are $60 per unit. Fixed manufacturing costs are $20 per unit based on the current level of activity. Fixed selling and administrative costs are $16 per unit. The contribution margin per unit is:
Business
1 answer:
djverab [1.8K]3 years ago
6 0

Answer:

$48

Explanation:

Contribution = Sales - Variable Costs

where,

Sales = $120

Variable Costs = $120 x 10% + $60 = $72

therefore,

Contribution = $120 - $72 = $48

The contribution margin per unit is: $48

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