andrewlawton1270 andrewlawton1270

01-07-2021
Business

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For a manufacturing company, selling price for an item is $480.00 per Unit, Variable cost is $248.00 per Unit, rent is $7,480.00 per month and insurance is $3000 per month. What is the contribution margin

Respuesta :

Parrain Parrain

05-07-2021

Answer: $232

Explanation:

The Contribution margin of a business refers to the amount left from it's sales after the variable costs have been accounted for.

It can be calculated by the formula:

= Selling price per unit - Variable cost per unit

= 480 - 248

= $232

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