Avia Company sells a product for $180 per unit. Variable costs are $120 per unit, and fixed costs are $700 per month. The company expects to sell 700units in September. The unit contribution margin isOA. $120 per unitOB. $180 per unitOC. $60 per unitOD. $300 per unit Sunshine Blender Company sold 7,000 units in October at a sales price of $40 per unit. The variable cost is $25 per unit. Calculate the total contributionmargin.OA. $280,000OB. $105,000OC. $87,500OD. $175,000

1.To calculate the total contribution margin, find the difference between total sales revenue and…

Answered: Avia Company sells a product for $180…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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Pluto Company sold 2,000 units in October at a price of $35 per unit. The variable cost is $25 per unit. Calculate the total contribution margin. A. $120,000 B. $20,000 C. $50,000 D. $70,000
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2. A company sells a single product at a price of $20 per unit. Variable expenses are$12 per unit. The company’s contribution format income statement for the mostrecent month follows:Total Per UnitSales (15,000 units) $300,000 $20Variable expenses 180,000 12Contribution margin 120,000 $8Fixed expenses 100,000Net operating income $20,000If the company sells 16,500 units next month, what should be the company’s totalcontribution margin? Show your calculations. Suggested approach: Total number of units sold × Unit CM **Pls help me im clear soultion with accurate answers pls thank u
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