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Korolek [52]
2 years ago
9

LMN Company produces a product that sells for $1. The company has production costs of $600,000, half of which are fixed costs. A

ssuming production and sales of 750,000 units, the contribution margin per unit is $ ____.
Business
1 answer:
madam [21]2 years ago
8 0

Answer:

Unitary Contribution margin= $0.6

Explanation:

Giving the following information:

LMN Company produces a product that sells for $1. The company has production costs of $600,000, half of which are fixed costs. Assuming the production and sales of 750,000 units.

Variable cost= 600,000/2= $300,000

Unitary variable cost= 300,000/750,000= $0.4

Unitary Contribution margin= 1 - 0.4= $0.6

Total contribution margin= $450,000

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