Problem on contribution margin per unit

Reference no: EM13153614

Carver Company produces a product which sells for $30. Variable manufacturing costs are $15 per unit. Fixed manufacturing costs are $5 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. The contribution margin per unit is:

a. $8

b. $15

c. $3

d. $12

Reference no: EM13153614

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