Chapter 21, Problem 9RQ

To determine

Concept introduction:

Contribution Margin: The Contribution Margin is the difference of Sales price and variable cost per unit. In other words, contribution margin is the amount of sales price after subtracting the variable cost.

The formula to calculate contribution margin per unit is as follows:

$ContributionMarginperunit=SalesPrice-Variablecostsperunit$

To Explain: The Contribution Margin