Sales are $1,000,000 for a product with a variable cost per unit of $6 and a sales price of $20. If fixed costs are $250,000, what is the contribution margin?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1EB: Calculate the per-unit contribution margin of a product that has a sale price of $150 if the...
icon
Related questions
Question

Sales are $1,000,000 for a product with a variable cost per unit of $6 and a sales price of $20. If fixed costs are $250,000, what is the contribution margin?

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer