Wellington Electronics manufactures and sells radios. Each radio sells for $28.50, and the variable cost per unit is $18.75. Wellington's total fixed costs are $30,000, and budgeted sales are 9,500 units. What is the contribution margin per unit? A) $8.75 B) $9.25 C) $10.50 D) $9.75

Wellington Electronics manufactures and sells radios. Each radio sells for $28.50, and the variable cost per unit is $18.75. Wellington's total fixed costs are $30,000, and budgeted sales are 9,500 units. What is the contribution margin per unit? A) $8.75 B) $9.25 C) $10.50 D) $9.75

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

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What is the contribution margin per unit?

Wellington Electronics manufactures and sells radios. Each radio sells for $28.50, and
the variable cost per unit is $18.75. Wellington's total fixed costs are $30,000, and
budgeted sales are 9,500 units.
What is the contribution margin per unit?
A) $8.75
B) $9.25
C) $10.50
D) $9.75

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