Answered: Calculate the per-unit contribution…

Calculate the per-unit contribution margin of a product that has a sale price of $794 if the variable costs per unit are $142.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

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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