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What are the contribution margin per unit

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Reference no: EM132871607

Problem - Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals $146,000. Each door handle sells for $12 and has variable cost of $9; each trim kit sells for $8 and has variable cost of $5.

What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits?

If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income?

Reference no: EM132871607

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