Problem based on contribution margin per unit


Carver Company produces a product which sells for $30. Variable manufacturing costs are $15 per unit. Fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A selling commission of 10% of the selling price is paid on each unit sold. The contribution margin per unit is:

a. $3.

b. $15.

c. $8.

d. $12.

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Accounting Basics: Problem based on contribution margin per unit
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