Lo 3.1a company’s product sells for $150 and has variable costs of $60 associated with the product. what is its contribution margin per unit?

$40
$60
$90
$150

$90

Explanation:

The formula and the computation of the contribution margin per unit are presented below:

Contribution margin per unit = Selling price per unit - variable cost per unit

                                               = $150 - $60

                                               = $90

If we deduct the variable cost per unit from the selling price per unit, then the contribution margin per unit can arrive

We only considered the selling price and the variable cost per unit

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.