ABC Company sold 3000 units in October at a sales price of $45 per unit. The...
ABC Company sold 3000 units in October at a sales price of $45 per unit. The variable cost is $25 per unit. Calculate the total contribution margin also in percentage and per unit.
Homework Answers
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| Calculate the total contribution margin | |||||
| Sales price = | 45 | ||||
| Variable cost per unit = | 25 | ||||
| Contribution margin | 20 | ||||
| Total contribution margin = | 60000 | ||||
| 20*3000 | |||||
| Ans = | 60000 | ||||
| contribution margin % = 60000/(45*3000) | 44.44% | ||||
| Ans = | 44.44% | ||||
| Per unit contribution margin = 45-25 = | 20 | ||||
| ans = | $ 20.00 | per unit | |||
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