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The Rivera Company manufactures and sells office chairs. Each chair sells for $85.50 and the variable cost per unit is $52.75. Rivera's total fixed costs are $45,000, and budgeted sales are 3,500 units. What is the contribution margin per unit? a. $22.75 b. $32.75 c. $45.50 d. $52.75 e. $85.50

The Rivera Company manufactures and sells office chairs. Each chair sells for $85.50 and the variable cost per unit is $52.75. Rivera's total fixed costs are $45,000, and budgeted sales are 3,500 units. What is the contribution margin per unit? a. $22.75 b. $32.75 c. $45.50 d. $52.75 e. $85.50

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The Rivera Company manufactures and sells office chairs. Each chair sells for $85.50 and the variable cost per unit is $52.75. Rivera's total fixed costs are $45,000, and budgeted sales are 3,500 units. What is the contribution margin per unit? a. $22.75 b. $32.75 c. $45.50 d. $52.75 e. $85.50
Transcribed Image Text:The Rivera Company manufactures and sells office chairs. Each chair sells for $85.50 and the variable cost per unit is $52.75. Rivera's total fixed costs are $45,000, and budgeted sales are 3,500 units. What is the contribution margin per unit? a. $22.75 b. $32.75 c. $45.50 d. $52.75 e. $85.50
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