Homework Answers
Number of units sold = 45,000
Selling price per unit = $10
Variable cost per unit = $5
Sales revenue = Number of units sold x Selling price per unit
= 45,000 x 10
= $450,000
Total variable costs = Number of units sold x Variable cost per unit
= 45,000 x 5
= $225,000
| Sales revenue | 450,000 |
| Total variable costs | - 225,000 |
| Contribution margin | 225,000 |
| Direct fixed costs | - 63,000 |
| Segment margin | $162,000 |
Third option is correct
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