If the contribution margin percentage is 30%, the selling price is $5000, then the contribution margin per unit will be ____________?
Correct answer: C. $1,500
- A. $900
- B. $1,200
- C. $1,500
- D. $1,600
Explanation
Contribution margin per unit equals selling price multiplied by the contribution margin percentage: $5,000 × 30% = $1,500. The percentage converts the selling price into the contribution amount.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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