Calculate the contribution margin per unit and contribution margin ratio A company sells 5,000 units at $50 per unit. Thevariable cost per unit is $30, and total fixed costs are$40,000.A. Calculate the contribution margin per unit.B. Determine the contribution margin ratio.

Step 1: Definition of Contribution MarginContribution margin is the amount remaining from sales…

Answered: A company sells 5,000 units at $50 per…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4EA: A product has a sales price of $250 and a per-unit contribution margin of $75. What is the...

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A company sells 5,000 units at $50 per unit. The variable cost per unit is $30, and total fixed costs are $40,000. A. Calculate the contribution margin per unit. B. Determine the contribution margin ratio.