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24 July, 18:06

The Haskins Company manufactures and sells radios. Each radio sells for $23.75 and the variable cost per unit is $16.25. Haskin's total fixed costs are $25,000, and budgeted sales are 8,000 units. What is the contribution margin per unit

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  1. 24 July, 22:04
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    Contribution margin per unit = $7.5

    Explanation:

    Giving the following information:

    Each radio sells for $23.75 and the variable cost per unit is $16.25.

    The contribution margin is the difference between the selling price and the unitary variable cost:

    Contribution margin = selling price - unitary variable cost

    Contribution margin = 23.75 - 16.25

    Contribution margin = $7.5
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