Sales (10,000 units) Less variable costs Contribution margin Less fixed costs Net income $150,000 - 48,000 $102,000 - 24,000 $ 78,000 What is the unit contribution margin? A. $12.00 B. $7.20 C. $ 4.80 D. $10.20

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Wesley's income statement is as follows:
Sales (10,000 units)
Less variable costs
Contribution margin
Less fixed costs
Net income
$150,000
- 48,000
$102,000
- 24,000
$ 78,000
What is the unit contribution margin?
A. $12.00
B. $ 7.20
C. $ 4.80
D. $10.20
Transcribed Image Text:Wesley's income statement is as follows: Sales (10,000 units) Less variable costs Contribution margin Less fixed costs Net income $150,000 - 48,000 $102,000 - 24,000 $ 78,000 What is the unit contribution margin? A. $12.00 B. $ 7.20 C. $ 4.80 D. $10.20
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