Answer:
Unit Contribution Margin = $6.50
Missing Problem Statement:
Sales $2,000,000
Variable costs:
Materials $380,000
Order processing $150,000
Billing labor $110,000
Selling expenses $60,000
Total variable costs $700,000
Fixed costs $1,000,000
Step-by-step explanation:
Given : Total number of calculators sold = 200,000
First we will find the contribution margin for the whole sale, so:
Contribution Margin = Sales - Variable Cost
Contribution Margin = 2000000-700000
Contribution Margin =$ 1,300,000
Now for unit contribution margin :
Unit Contribution Margin = [tex]\frac{Contribution.Margin}{Total.number.of.Calculators.Sold}[/tex]
Unit Contribution Margin =[tex]\frac{1300000}{200000}[/tex]
Unit Contribution Margin = $6.50
