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Coultrap Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units) $ 180,000 Variable expenses 117,000 Contribution margin 63,000 Fixed expenses 48,300 Net operating income $ 14,700 The contribution margin per unit is closest to:

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abiolataiwo2015

Answer:

35%

Explanation:

Calculation for thecontribution margin per unit

Using this formula

= Contribution margin / Sales

Let plug in the formula

Where,

Contribution margin = $63,000

Sales =$180,000

Hence,

Contribution margin per unit = $ 63,000 / $ 180,000

Contribution margin per unit = 0.35 ×100

Contribution margin per unit= 35

Therefore the contribution margin per unit is closest to: 35%

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