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Doughton Bearings produces ball bearings for industrial equipment. In evaluating the financial data from the previous...

Doughton Bearings produces ball bearings for industrial equipment. In evaluating the financial data from the previous year, the management accountant has determined that the company’s selling price per unit is $35, while the variable cost per unit is $30. What is the contribution margin per unit?

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Answer #1

Contribution margin=Sales-Variable cost

=35-30

which is equal to

=$5 per unit.

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