Pacific Sound manufactures and sells speakers. Each speaker sells for $120, and the variable cost per unit is $72. Pacific's total fixed costs are $85,000, and budgeted sales are 2,500 units. What is the contribution margin per unit? A) $38 B) $52 C) $48 D) $58

Pacific Sound manufactures and sells speakers. Each speaker sells for $120, and the variable cost per unit is $72. Pacific's total fixed costs are $85,000, and budgeted sales are 2,500 units. What is the contribution margin per unit? A) $38 B) $52 C) $48 D) $58

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

Pacific Sound manufactures and sells speakers. Each speaker sells for $120, and
the variable cost per unit is $72. Pacific's total fixed costs are $85,000, and
budgeted sales are 2,500 units.
What is the contribution margin per unit?
A) $38
B) $52
C) $48
D) $58

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