Computation of contribution per unit

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Reference no: EM1314940

Computation of contribution per unit for various models.

Person Company makes two types of backpacks. Data for the company's activity during a typical month are presented below:

	School Model	Hiker Model
Sales Unit	$40,000	$40,000
Selling price per unit	$6	$18
Variable expense per unit	$2	$10

The company's total fixed expenses are $80,000. There are no beginnings or ending inventories. Required:

What is the per unit contribution margin for each of the two models?

Reference no: EM1314940

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