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A company with monthly fixed costs of $170,000 expects to earn monthly operating income of $25,000 by selling 6,500 units per month. what is the company's expected unit contribution margin?

Sagot :

$30 per unit is the company's expected unit contribution margin.

Because the value of the contribution margin is used in the calculation of the break-even point. The contribution margin for the unit can be     calculated by deducting the variable cost per unit from the sales value per unit. The contribution margin for the entire company will be calculated only for total contribution margin dollars as a percent of total sales dollars.

Margin is the part of a page or sheet outside the main body of printed or written matter.

Variable costs are expenses that vary in proportion to the volume of goods or services that a business produces

Sales refers to the exchange of a product, commodity, service or delivery for money.

To know more about the Margin here

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