What is his contribution margin per unit of sale

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Question - Dana Wright operates an airport limousine service. He owns the limo and does his own driving. He values his driving time at $25 per hour. He pays a commission fee of $10 to the person who brings him the business. A trip to the airport takes three hours and uses $25 worth of gasoline. If Dana charges each customer $200, what is his contribution margin per unit of sale? How much does Dana make on each trip as a driver? As the owner of the business? Show your math.

Reference no: EM133109686

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