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The Foundational 15
1. The contribution margin per unit is calculated as follows:
Total contribution margin (a).......
Total units sold (b).....................................................
Contribution margin per unit (a) (b)........................
$8,000
1,000 units
per
$8.00
unit
$8,000
$20,000
40%
$12,000
$20,000
60%
per
$8.00 unit
1 unit
$8.00
$20,00
0
15,000
$ 5,00
0
$5,000
$20,00
0
25%
4.0
5%
20%
$2,000
7.0
7.0
5%
35%