What is the contribution margin per unit for abc

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Reference no: EM132803029

Problem 1: ABC produces a product that sells for $20. Variable manufacturing costs are $8 per unit. Fixed manufacturing costs are $3 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A selling commission of 10% of the selling price is paid on each unit sold. What is the contribution margin per unit?

Select one:

a. $6

b. $3

C. $12

d. $10

Reference no: EM132803029

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