Contribution Margin per Unit (CMPU): Contribution margin refers to the difference between the sales revenue of a unit and its variable cost per unit. It represents the amount not absorbed by the variable cost and will be utilized to cover fixed cost of the company. To identify: The correct option.

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Answer 1

Question

Chapter 5, Problem 1MCQ

To determine

Contribution Margin per Unit (CMPU):

Contribution margin refers to the difference between the sales revenue of a unit and its variable cost per unit. It represents the amount not absorbed by the variable cost and will be utilized to cover fixed cost of the company.

To identify: The correct option.

Expert Solution & Answer

Explanation of Solution

Option a, $50 is correct.

Given,
Selling price of the product is $150 per unit.
Variable cost is $100 per unit.
Fixed cost is $75,000

Formula to calculate contribution margin per unit,

Contribution margin per unit=Selling price per unit−Variable cost per unit

Substitute $150 in the value of selling price per unit and $100 in the value of variable cost per unit.

Contribution margin per unit=$150 per unit−$100 per unit =$50 per unit

Hence, the correct option is a.

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Answer 2

Question

Chapter 5, Problem 1MCQ

To determine

Contribution Margin per Unit (CMPU):

Contribution margin refers to the difference between the sales revenue of a unit and its variable cost per unit. It represents the amount not absorbed by the variable cost and will be utilized to cover fixed cost of the company.

To identify: The correct option.

Expert Solution & Answer

Explanation of Solution

Option a, $50 is correct.

Given,
Selling price of the product is $150 per unit.
Variable cost is $100 per unit.
Fixed cost is $75,000

Formula to calculate contribution margin per unit,

Contribution margin per unit=Selling price per unit−Variable cost per unit

Substitute $150 in the value of selling price per unit and $100 in the value of variable cost per unit.

Contribution margin per unit=$150 per unit−$100 per unit =$50 per unit

Hence, the correct option is a.

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Answer 3

Question

Chapter 5, Problem 1MCQ

To determine

Contribution Margin per Unit (CMPU):

Contribution margin refers to the difference between the sales revenue of a unit and its variable cost per unit. It represents the amount not absorbed by the variable cost and will be utilized to cover fixed cost of the company.

To identify: The correct option.

Expert Solution & Answer

Explanation of Solution

Option a, $50 is correct.

Given,
Selling price of the product is $150 per unit.
Variable cost is $100 per unit.
Fixed cost is $75,000

Formula to calculate contribution margin per unit,

Contribution margin per unit=Selling price per unit−Variable cost per unit

Substitute $150 in the value of selling price per unit and $100 in the value of variable cost per unit.

Contribution margin per unit=$150 per unit−$100 per unit =$50 per unit

Hence, the correct option is a.

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Answer 4

Question

Chapter 5, Problem 1MCQ

To determine

Contribution Margin per Unit (CMPU):

Contribution margin refers to the difference between the sales revenue of a unit and its variable cost per unit. It represents the amount not absorbed by the variable cost and will be utilized to cover fixed cost of the company.

To identify: The correct option.

Expert Solution & Answer

Explanation of Solution

Option a, $50 is correct.

Given,
Selling price of the product is $150 per unit.
Variable cost is $100 per unit.
Fixed cost is $75,000

Formula to calculate contribution margin per unit,

Contribution margin per unit=Selling price per unit−Variable cost per unit

Substitute $150 in the value of selling price per unit and $100 in the value of variable cost per unit.

Contribution margin per unit=$150 per unit−$100 per unit =$50 per unit

Hence, the correct option is a.

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Answer 5

Chapter 5, Problem 1MCQ

To determine

Contribution Margin per Unit (CMPU):

Contribution margin refers to the difference between the sales revenue of a unit and its variable cost per unit. It represents the amount not absorbed by the variable cost and will be utilized to cover fixed cost of the company.

To identify: The correct option.

Expert Solution & Answer

Explanation of Solution

Option a, $50 is correct.

Given,
Selling price of the product is $150 per unit.
Variable cost is $100 per unit.
Fixed cost is $75,000

Formula to calculate contribution margin per unit,

Contribution margin per unit=Selling price per unit−Variable cost per unit

Substitute $150 in the value of selling price per unit and $100 in the value of variable cost per unit.

Contribution margin per unit=$150 per unit−$100 per unit =$50 per unit

Hence, the correct option is a.

Answer 6

Chapter 5, Problem 1MCQ

To determine

Contribution Margin per Unit (CMPU):

Contribution margin refers to the difference between the sales revenue of a unit and its variable cost per unit. It represents the amount not absorbed by the variable cost and will be utilized to cover fixed cost of the company.

To identify: The correct option.

Expert Solution & Answer

Explanation of Solution

Option a, $50 is correct.

Given,
Selling price of the product is $150 per unit.
Variable cost is $100 per unit.
Fixed cost is $75,000

Formula to calculate contribution margin per unit,

Contribution margin per unit=Selling price per unit−Variable cost per unit

Substitute $150 in the value of selling price per unit and $100 in the value of variable cost per unit.

Contribution margin per unit=$150 per unit−$100 per unit =$50 per unit

Hence, the correct option is a.

Answer 7

Chapter 5, Problem 1MCQ

To determine

Contribution Margin per Unit (CMPU):

Contribution margin refers to the difference between the sales revenue of a unit and its variable cost per unit. It represents the amount not absorbed by the variable cost and will be utilized to cover fixed cost of the company.

To identify: The correct option.

Answer 8

Expert Solution & Answer

Explanation of Solution

Option a, $50 is correct.

Given,
Selling price of the product is $150 per unit.
Variable cost is $100 per unit.
Fixed cost is $75,000

Formula to calculate contribution margin per unit,

Contribution margin per unit=Selling price per unit−Variable cost per unit

Substitute $150 in the value of selling price per unit and $100 in the value of variable cost per unit.

Contribution margin per unit=$150 per unit−$100 per unit =$50 per unit

Hence, the correct option is a.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 5 - Prob. 1MCQ Ch. 5 - Prob. 2MCQ Ch. 5 - Prob. 3MCQ Ch. 5 - Prob. 4MCQ Ch. 5 - Prob. 5MCQ Ch. 5 - Prob. 1DQ Ch. 5 - Prob. 2DQ Ch. 5 - When output volume increases, do fixed costs per...Ch. 5 - How is the cost-volume-profit analysis useful?Ch. 5 - Prob. 5DQ

Contribution Margin per Unit (CMPU): Contribution margin refers to the difference between the sales revenue of a unit and its variable cost per unit. It represents the amount not absorbed by the variable cost and will be utilized to cover fixed cost of the company. To identify: The correct option.

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Contribution Margin per Unit (CMPU):

Contribution margin refers to the difference between the sales revenue of a unit and its variable cost per unit. It represents the amount not absorbed by the variable cost and will be utilized to cover fixed cost of the company.

To identify: The correct option.

Explanation of Solution

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Chapter 5 Solutions