Quaker corporation sold 6,600 units of its product at a price of $42.40 per unit. total variable cost per unit is $19.25, consisting of $10.15 in variable production cost and $9.10 in variable selling and administrative cost. compute contribution margin for the company.

The Unit CM will be 23.15

The total contribution will be 152,790

Explanation:

42.40  Sales Revenue

(19.25) Variable cost

23.15   Contribution Margin  per unit

This is the amount per unit after paying the variable cost.

This will be the complete contribution generated for the product. It will be used to pay the fixed cost and the remainder will be operating gains.

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