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The Wilson Company manufactures and sells headphones. Each headphone sells for $42.50 and the variable cost per unit is $27.75. Wilson's total fixed costs are $36,000, and budgeted sales are 6,000 units. What is the contribution margin per unit?

The Wilson Company manufactures and sells headphones. Each headphone sells for $42.50 and the variable cost per unit is $27.75. Wilson's total fixed costs are $36,000, and budgeted sales are 6,000 units. What is the contribution margin per unit?

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...
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The Wilson Company manufactures and sells headphones. Each headphone sells for $42.50 and the variable cost per unit is $27.75. Wilson's total fixed costs are $36,000, and budgeted sales are 6,000 units. What is the contribution margin per unit?
Transcribed Image Text:The Wilson Company manufactures and sells headphones. Each headphone sells for $42.50 and the variable cost per unit is $27.75. Wilson's total fixed costs are $36,000, and budgeted sales are 6,000 units. What is the contribution margin per unit?
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