FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Calculate the per-unit contribution margin of a product that has a sale price of $794 if the variable costs per unit are $142.
Expert Solution
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Step 1
Contribution margin is the excess of sales value over the variable costs associated with making a product. Breakeven point is the point where fixed costs equal the contribution margin of the company.
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