At its $30 selling price, Atlantic Company has sales of $30,000, variable manufacturing costs of $6,000,...
At its $30 selling price, Atlantic Company has sales of $30,000, variable manufacturing costs of $6,000, fixed manufacturing costs of $2,000, variable selling and administrative costs of $6,000 and fixed selling and administrative costs of $2,000. What is the company's contribution margin per unit?
Homework Answers
Contribution Margin Per unit :
| Particular | Amt ($) |
| Selling Price | 30,000 |
| (-) Variable manufacturing costs | (6,000) |
| (-) Variable selling & administrative cost | (6,000) |
| Contributin margin | 18,000 |
Nos of units = Total sales / Selling price per unit = $ 30000/ $30 = 1000 Units
Contribution Margin Per Unit = Contribution margin / Total units
= $ 18,000 / 1000
= $ 18 per unit
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