A company with monthly fixed costs of $170,000 expects to earn monthly operating income of $25,000 by selling 6,500 units per month. What is the company's expected unit contribution margin?Multiple Choice$30 per unit$26 per unit$22 per unitThe information given is insufficient to determine unit contribution margin.
Question
A company with monthly fixed costs of 25,000 by selling 6,500 units per month. What is the company's expected unit contribution margin?Multiple Choice26 per unit$22 per unitThe information given is insufficient to determine unit contribution margin.
Solution
To determine the company's expected unit contribution margin, we need to calculate the contribution margin per unit.
The contribution margin per unit can be calculated by subtracting the variable cost per unit from the selling price per unit. However, the information provided does not include the selling price or the variable cost per unit.
Therefore, the information given is insufficient to determine the unit contribution margin.
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