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Gary Corporation manufactures a single product. The selling price is $104 per unit, and variable costs amount to $78 per unit. The fixed costs are $36,000 per month (round any units to the next highest full unit). a. What is the contribution margin per unit

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Answer:

$26 per unit

Explanation:

Contribution margin per unit: It is the difference between the selling price and the variable cost per unit.

In mathematically,

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $104 - $78

= $26 per unit

All other information that is given is not relevant as the fixed cost is not taken for computing the contribution margin per unit because it is taken for computing the break even point and margin of safety. Hence, ignored it

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