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30 January, 23:07

The following requirements are interdependent. For example, the $252,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements.

Determine the contribution margin per unit.

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  1. 30 January, 23:12
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    contribution margin per unit is $63

    Explanation:

    Data was missing in the question, the original question has following Information

    Rosenthal Company makes and sells products with variable costs of $24 each. Rosenthal incurs annual fixed costs of $315,000. The current sales price is $87.

    Sales price = $87 / unit

    Variable Cost = $24 / unit

    Contribution Margin = Sales Price - Variable Cost

    Contribution Margin = $87 - $24

    Contribution Margin = $63 / unit
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