Contribution margin-selling and administrative costs


Kelly Company sells its only product for $9 per unit, variable production costs are $3 per unit, and selling and administrative costs are $1.50 per unit. Fixed costs for 10,000 units are $5,000. The contribution margin is:

A) $6 per unit

B) $4.50 per unit

C) $5.50 per unit

D) $4 per unit

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Accounting Basics: Contribution margin-selling and administrative costs
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