Vicious Cycle, Inc., produces and sells 2,000 bikes. Selling price per unit $2,000 Variable cost per unit $800 Annual fixed cost $500,000What is the company's contribution margin per unit? (Round to the nearest cent.)

Vicious Cycle, Inc., produces and sells 2,000 bikes. Selling price per unit $2,000 Variable cost per unit $800 Annual fixed cost $500,000What is the company's contribution margin per unit? (Round to the nearest cent.)

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

Vicious Cycle, Inc., produces and sells 2,000 bikes.

Selling price per unit $2,000

Variable cost per unit $800

Annual fixed cost $500,000

What is the company's contribution margin per unit? (Round to the nearest cent.)

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