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contribution margin per unit will be
A-2
B -3
C -4
D -5
contribution margin = Sales Price per unit - Total Variable cost per Unit
Answer B -3
B ------------------------------------------------------------------------------------
3
Variable cost per unit = ()/()= 3 per unit
Sales price per unit =300000/50000 =6 per unit
Contribution per unit =3 per unit
(B) is the Correct Ans.
Using High Low Method,
$500,000 - $200,000 /200,0000 -100,000 = $3 Variable Cost Per Unit
So,
Sale Price Per Unit = $300,000 /50,000 = $6 Per Unit
And Contribution Per unit is =6 -3 =3
variable cost /unite=/=$3/unit
selling price=300000/50000=$6/unit
Contribution margin per unit=6-3=$3
So answer B
calculation of contribution margin per unit :
Selling price per unit = Sales price / sales unit
= $300,000/50,000
=$6 per unit
less: Variable cost per unit:
=(Highest-lowest Total production cost)/(Highest volume-lowest volume)
=$(500,000-200,000)/(200,000-100,000)
=$3
Contribution margin per unit $3
Hence B-3 is the correct answer