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lina2011 [118]
3 years ago
13

a company product sells for 170 and has variable cost of 50 associated with the product what is its contribution margin per unit

?​
Business
1 answer:
Stella [2.4K]3 years ago
5 0

Answer:

Contribution margin per unit = 120 per unit

Explanation:

Given:

Sales price of a unit = 170

Variable cost per unit = 50

Find:

Contribution margin per unit

Computation:

Contribution margin per unit = Sales price of a unit - Variable cost per unit

Contribution margin per unit = 170 - 50

Contribution margin per unit = 120 per unit

Contribution margin ratio = [Contribution margin per unit / Sales price of a unit]100

Contribution margin ratio = [120 / 170]100

Contribution margin ratio = [0.7058]100

Contribution margin ratio = 70.58% (Approx.)

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Answer:

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