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If a company has a selling price of $25, variable costs of $10 per unit, and...

If a company has a selling price of $25, variable costs of $10 per unit, and fixed costs of $25,000. Contribution margin is $75,000. How many units did they sell?

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Answer #1

Total Contribution margin

= (Selling price per unit - Variable costs per unit) * units sold

(25 - 10) * units sold = 75,000

15 * units sold = 75,000

Units sold = 75,000/15

= 5,000 units

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