The contribution per unit is $1200 and the number of units sold is $80, then the contribution margin would be ____________?
Correct answer: B. $96,000
- A. $9,650
- B. $96,000
- C. $15
- D. $9,600
Explanation
Total contribution equals contribution per unit multiplied by units sold: $1,200 × 80 = $96,000. The amount is not contribution per unit, so $15 and $9,600 do not fit.
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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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