Royal Company provides the following information about its single product. Targeted operating income $55,260 Selling price per unit $6.20 Variable cost per unit $4.40 Total fixed cost $83,880 What is the contribution margin per unit? ⦁ $0.29 ⦁ $10.60 ⦁ $1.80 ⦁ $4.40

Royal Company provides the following information about its single product. Targeted operating income $55,260 Selling price per unit $6.20 Variable cost per unit $4.40 Total fixed cost $83,880 What is the contribution margin per unit? ⦁ $0.29 ⦁ $10.60 ⦁ $1.80 ⦁ $4.40

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

10. Royal Company provides the following information about its single product.

Targeted operating income $55,260
Selling price per unit $6.20
Variable cost per unit $4.40
Total fixed cost $83,880

What is the contribution margin per unit?
⦁ $0.29
⦁ $10.60
⦁ $1.80
⦁ $4.40

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