A recent income statement of Black Corporation reported the

A recent income statement of Black Corporation reported the following data:

If these data are based on the sale of 20,000 units, the contribution margin per unit would be:

$365.

$295.

$45.

$155.

an amount other than those above.

Solution

Answer

Contribution Margin per Unit = Contribution Margin / No. of Units Produced

= (Sales Revenue – Variable Cost) / No. of Units Produced

= ($8,720,000 – 5,620,000) / 20,000 Units

Contribution Margin per Unit = $155 per unit

Answer = $155 per unit

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