Contribution Margin
A project has estimated sales of 11,500 units, ±2 percent. The expected variable cost per unit is $13, and the expected fixed costs are $29,000. The fixed and variable cost estimates are considered accurate within a range of ±3 percent. The sales price is estimated at $29 a unit, ±1 percent. What is the contribution margin for a sensitivity analysis using a fixed cost of $30,000?
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