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Flannigan Company manufactures and sells a single product that sells for $650 per unit; variable costs are $338. Annual fixed costs are $960,000. Current sales volume is $4,320,000. Compute the contribution margin per unit.

Respuesta :

Answer:

Contribution margin per unit = $312

Explanation:

Given:

Selling price per unit = $650

Variable costs per unit = $338

Annual fixed costs = $960,000

Current sales volume = $4,320,000

Contribution margin per unit = ?

Computation of contribution margin per unit:

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

Contribution margin per unit = $650 - $338

Contribution margin per unit = $312

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