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Helga's Pretzels sells pretzels for $8. The variable costs for each pretzel are $1, while the...

Helga's Pretzels sells pretzels for $8. The variable costs for each pretzel are $1, while the total fixed costs are $1000. The contribution margin for 1900 pretzels is

$8000.

$1000.

$14,200.

$13,300.

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Answer #1

contribution margin per unit = Selling price per unit -variable cost per unit

= $ 8 - $ 1

= $ 7

The contribution margin for 1900 pretzels = contribution margin per unit * Units

= $ 7 * 1900 units

= $ 13,300

Hence the correct answer is $ 13,300

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