Mountainview Manufacturing produces and sells portable speakers. Each speaker sells for $45.00, and the variable cost per unit is $27.50. Mountainview's total fixed costs are $42,000, and budgeted sales are 8,000 units. What is the contribution margin per unit? A) $17.50 B) $20.25 C) $15.75 D) $18.50

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter7: Cost-volume-profit Analysis
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Mountainview Manufacturing produces and sells portable speakers. Each
speaker sells for $45.00, and the variable cost per unit is $27.50.
Mountainview's total fixed costs are $42,000, and budgeted sales are 8,000
units.
What is the contribution margin per unit?
A) $17.50
B) $20.25
C) $15.75
D) $18.50
Transcribed Image Text:Mountainview Manufacturing produces and sells portable speakers. Each speaker sells for $45.00, and the variable cost per unit is $27.50. Mountainview's total fixed costs are $42,000, and budgeted sales are 8,000 units. What is the contribution margin per unit? A) $17.50 B) $20.25 C) $15.75 D) $18.50
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