A firm expects to sell 25,000 units of its product at $11 per unit and to...
A firm expects to sell 25,000 units of its product at $11 per unit and to incur variable costs per unit of $6. Total fixed costs are $70,000. The total contribution margin is:
Homework Answers
Total contribution margin= $125,000
Working
| Per Unit (A) | Units (B) | Total (A x B) | |
| Sales revenue | $ 11.00 | 25000 | $ 275,000.00 |
| Variable costs | $ 6.00 | 25000 | $ 150,000.00 |
| Contribution margin | $ 5.00 | 25000 | $ 125,000.00 |
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