Answer: $7.50
Explanation:
The Contribution Margin of a good refers to it's SELLING price per unit MINUS it's VARIABLE costs per unit. The term CONTRIBUTION is referring to the portion of sales that is not consumed by variable costs and so CONTRIBUTES to the coverage of Fixed Costs.
So the formula for Contribution margin is,
= Selling Price per unit - Variable Costs
= 13 - 5.50
= 7.50
The Contribution Margin of Dot Motion Picture Tickets are $7.50
I think it's A.
If supply increases, cost decreases.
If supply decreases, cost increases.
I hope it helped you!
Answer:
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