What is the contribution margin


McAfee, which began business at the start of the current year, had the following data:

Planned and actual production: 40,000 units
Sales: 37,000 units at $15 per unit
Production costs:
Variable: $4 per unit
Fixed: $260,000
Selling and administrative costs:
Variable: $1 per unit
Fixed: $32,000

what is the contribution margin that the company would disclose on an absorption-costing income statement ?

 

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Accounting Basics: What is the contribution margin
Reference No:- TGS070343

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