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A company's product sells at $12 per unit and has a $5 per unit variable cost. The company's total fixed costs are $98,000. The contribution margin per unit is:

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Tundexi

Answer:

The contribution margin per unit is $7

Explanation:

The contribution margin per unit can be defined as the difference between the selling price per unit and the variable cost per unit.

Contribution margin per unit = Selling price - Variable cost

Contribution margin per unit = $12 - $5

Contribution margin per unit = $7

The contribution margin per unit is $7

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