QUESTION 2 Sales revenue is 250000 fixed costs are 90000 pro

QUESTION 2 Sales revenue is $250,000, fixed costs are $90,000, profit is $50,000 and sales price per unit is $25.00 Variable cost per unti O $11.00 15.00 O $20.00 O$25.00

Solution

Sales units = 250000/25 = 10000 Contribution margin = 90000+50000 = $140000 Unit contribution margin = 140000/10000 = $14 Unit variable cost = 25-14 = $11 Option 1 is correct