What is the contribution margin per unit

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Q1. Immelt Company charges a price of $6.50; total fixed cost is $314,400 per year, and the break-even point is 131,000 units. What is the variable cost per unit?

Q2. Candyland Inc. produces a particularly rich praline fudge. Each 10-ounce box sells for $5.60. Variable unit costs are as follows: Fixed overhead cost is $32,300 per year. Fixed selling and administrative costs are $12,500 per year. Candyland sold 35,000 boxes last year. What is the contribution margin per unit for a box of praline fudge? What is the contribution margin ratio?

Reference no: EM132871632

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