Sales are $1,500,000 for a product with a variable cost per unit of $8 and a sales price of $25. If fixed costs are $320,000, what is the contribution margin ($)?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Sales are $1,500,000 for a product
with a variable cost per unit of $8
and a sales price of $25. If fixed
costs are $320,000, what is the
contribution margin ($)?
Transcribed Image Text:Sales are $1,500,000 for a product with a variable cost per unit of $8 and a sales price of $25. If fixed costs are $320,000, what is the contribution margin ($)?
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