Fletcher Electronics manufactures and sells speakers. Each speaker sells for $30.50, and the variable cost per unit is $18.50. Fletcher's total fixed costs are $40,000, and budgeted sales are 10,000 units. What is the contribution margin per unit?

Fletcher Electronics manufactures and sells speakers. Each speaker sells for $30.50, and the variable cost per unit is $18.50. Fletcher's total fixed costs are $40,000, and budgeted sales are 10,000 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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Question

What is the contribution margin per unit on these general accounting question?

Fletcher Electronics manufactures and sells speakers. Each
speaker sells for $30.50, and the variable cost per unit is
$18.50. Fletcher's total fixed costs are $40,000, and budgeted
sales are 10,000 units.
What is the contribution margin per unit?

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