Question

A division sold 150000 calculators during 2020: Sales $1500000 Variable costs:        Materials $285000        Order...

A division sold 150000 calculators during 2020:

Sales $1500000
Variable costs:
       Materials $285000
       Order processing 112500
       Billing labor 82500
       Selling expenses 45000
       Total variable costs 525000
Fixed costs 1000000


How much is the unit contribution margin?

$1.00
$3.50
$10.17
$6.50
1 0
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Answer #1

Unit contribution margin

= (Sales - Total Variable costs)/Units sold

= (1500000 - 525000) /150000

= 6.50

Option D is the answer

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