Tadfield Dairy Farm sells a tub of ice cream for $9. Variable costs are $4.20 per unit and fixed costs for the period are $2,400. What is the contribution margin per unit? Group of answer choices None of the other options $4.20 $500 $4.80 $9.00
Question
Tadfield Dairy Farm sells a tub of ice cream for 4.20 per unit and fixed costs for the period are $2,400. What is the contribution margin per unit?
Group of answer choices
None of the other options
$4.20
$500
$4.80
$9.00
Solution
The contribution margin per unit is calculated by subtracting the variable cost per unit from the selling price per unit.
In this case, the selling price per unit is 4.20.
So, the contribution margin per unit is 4.20 = $4.80.
Therefore, the correct answer is $4.80.
Similar Questions
Tadfield Dairy Farm sells a tub of ice cream for $10. The variable costs are $7 per unit. The break-even point is 25,000 tubs. What are the total fixed costs? Group of answer choices $75,000 $250,000 None of the other options $175,000 $25,000
Our company sells a product for $150 per unit. Variable costs are $90 per unit and fixed costs are $18,000. The company expects to sell 800 units this year. What is the contribution margin in total dollars?Group of answer choices$60$18,000$30,000$48,000
If selling price is $20 per unit and variable costs are $14 per unit, the contribution margin is:Group of answer choices$1.43 per unit.$280.$6 per unit.$34 per unit.
A product has a sales price of $234 and a per-unit variable cost of $64.What is the contribution margin ratio? Please answer to 2 decimal places
What is the contribution margin per unit for the following company that sells only 1 product?Selling price per unit $9.30Fixed production costs $50,600Fixed selling and admin costs $9,400Break-even units 15,000
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.