The variable cost is $18 per unit for a product that sells for $25. For 2,500 units, what is the contribution margin and contribution margin per unit? a. $10,500; $7 b. $17,500; $7 c. $20,000; $18 d. $25,000; $25

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1EA: Calculate the per-unit contribution margin of a product that has a sale price of $200 if the...
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What is the contribution margin per unit?

The variable cost is $18 per unit for a product that
sells for $25. For 2,500 units, what is the
contribution margin and contribution margin per
unit?
a. $10,500; $7
b. $17,500; $7
c. $20,000; $18
d. $25,000; $25
Transcribed Image Text:The variable cost is $18 per unit for a product that sells for $25. For 2,500 units, what is the contribution margin and contribution margin per unit? a. $10,500; $7 b. $17,500; $7 c. $20,000; $18 d. $25,000; $25
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