At
its $25 selling price, Paciolli Company has sales of $10,000, variable
manufacturing costs of $4,000, fixed manufacturing costs of $1,000, variable
selling and administrative costs of $2,000 and fixed selling and administrative
costs of $1,000. What is the company's contribution margin per unit?
TUTORIAL PREVIEW
Contribution margin = Sales –
variable cost
= $10,000 – ($4,000 + $2,000)
= $4,000
