Mountainview Audio manufactures and sells wireless headphones. Each headphone sells for $65.00, and the variable cost per unit is $42.50. Mountainview's total fixed costs are $45,000, and budgeted sales are 8,000 units. What is the contribution margin per unit?
Mountainview Audio manufactures and sells wireless headphones. Each headphone sells for $65.00, and the variable cost per unit is $42.50. Mountainview's total fixed costs are $45,000, and budgeted sales are 8,000 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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Transcribed Image Text:Mountainview Audio manufactures and sells wireless headphones. Each
headphone sells for $65.00, and the variable cost per unit is $42.50.
Mountainview's total fixed costs are $45,000, and budgeted sales are 8,000
units. What is the contribution margin per unit?
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