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Calculate the per-unit contribution margin of a product that has a sale price of $200 if the variable costs per unit are $65.

Question

Calculate the per-unit contribution margin of a product that has a sale price of 200ifthevariablecostsperunitare200 if the variable costs per unit are 65.

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Solution

To calculate the per-unit contribution margin, you subtract the variable costs per unit from the sale price per unit.

Here's how you do it:

Step 1: Identify the sale price per unit. In this case, it's $200.

Step 2: Identify the variable costs per unit. In this case, it's $65.

Step 3: Subtract the variable costs per unit from the sale price per unit.

So, 200(salepriceperunit)200 (sale price per unit) - 65 (variable costs per unit) = $135.

Therefore, the per-unit contribution margin of the product is $135.

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