Determine the contribution margin per unit

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Reference no: EM1312020

Calculation of contribution margin per unit.

1. Ralph and Emma's is considering a project with total sales of $17,500, total variable costs of $9,800, total fixed costs of $3,500, and estimated production of 400 units. The depreciation expense is $2,400 a year. What is the contribution margin per unit?

a.$4.50

b.$10.50

c.$14.14

d. $19.09

e. $19.25

Reference no: EM1312020

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