Atlantic Co has total fixed costs of $96.900. Atlantic sells radios at $12.22 per radio and...

Question

Question

business accounting

Answer 1

Answer #1

CONTRIBUTION MARGIN PER UNIT: $6.89

Contribution margin is the incremental money received from the sale of each unit.
It is the contribution towards the recovery of fixed costs. Any contribution earned after the recovery of fixed costs is the profit earned.
Contribution margin per unit = Selling price per unit - Variable cost per unit = $12.22 - $5.33 = $6.89

Answer 2

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