Sparkle Jewelry sells 800 units resulting in 9000 of sales r

Sparkle Jewelry sells 800 units resulting in $9,000 of sales revenue, $3,000 of variable costs, and $1,500 of fixed costs. Contribution margin per unit is ________. (Round the final answer to the nearest cent.)

Solution

Contribution margin per unit = ($9,000 - $3,000) / 800

Contribution margin per unit = $6,000 / 800

Contribution margin per unit = $7.50 per unit