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The Haskins Company manufactures and sells radios. Each radio sells for $23.75 and the variable cost per unit is $16.25. Haskin's total fixed costs are $25,000, and budgeted sales are 8,000 units. What is the contribution margin per unit?
a) $7.50
b) $16.25
c) $23.75
d) $60,000
e) $1.25

Respuesta :

Answer:

a) $7.50

Explanation:

The computation of the contribution margin per unit is shown below

The contribution margin per unit is

= Selling price per unit - variable cost per unit

= $23.75 per unit - $16.25 per unit

= $7.50 per unit

By substracting the variable cost per unit from the selling price per unit we can get the contribution margin per unit

Hence, the option a is correct

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