The following requirements are interdependent. For example, the $252,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements.

Determine the contribution margin per unit.

Question

Business

Gregory Kidd

8 August, 04:05

The following requirements are interdependent. For example, the $252,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements.

Determine the contribution margin per unit.

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Answers (1)

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Kenley Buck · Answer 1

contribution margin per unit is $63

Explanation:

Data was missing in the question, the original question has following Information

Rosenthal Company makes and sells products with variable costs of $24 each. Rosenthal incurs annual fixed costs of $315,000. The current sales price is $87.

Sales price = $87 / unit

Variable Cost = $24 / unit

Contribution Margin = Sales Price - Variable Cost

Contribution Margin = $87 - $24

Contribution Margin = $63 / unit

The following requirements are interdependent. For example, the $252,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements.Determine the contribution margin per unit.

The following requirements are interdependent. For example, the $252,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements.

Determine the contribution margin per unit.