For a table manufacturing company selling price for a table

For a table manufacturing company, selling price for a table is $200.00 per Unit, Variable cost is $125.00 per Unit, rent is $2,630.00 per month and insurance is $1,487.00 per month. How much is the company contributing to covering their fixed costs or generating profits?

Solution

Contribution Margin per unit = Sales price – Variable cost per unit

                                                    = $ 200 - $ 125 = $ 75