Benton Audio manufactures and sells headphones. Each headphone sells for $40, and the variable cost per unit is $25. Benton Audio's total fixed costs are $50,000, and the budgeted sales are 12,000 units. What is the contribution margin per unit?

Benton Audio manufactures and sells headphones. Each headphone sells for $40, and the variable cost per unit is $25. Benton Audio's total fixed costs are $50,000, and the budgeted sales are 12,000 units. What is the contribution margin per unit?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...

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Please help me solve this accounting question using the right financial principles.

Benton Audio manufactures and sells headphones. Each
headphone sells for $40, and the variable cost per unit is
$25. Benton Audio's total fixed costs are $50,000, and the
budgeted sales are 12,000 units.
What is the contribution margin per unit?

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