Respuesta :
Answer:
$80
Explanation:
Contribution per unit is a strategy of calculating incremental profit of a unit of an item sold to cover the fixed costs and the overall profit.
This is done by deducting the unit variable cost form the unit selling price.
Workings.
Unit selling price = $100
Unit variable cost = $20
Contribution per unit = $(100-20)
$80
Answer:
Option B is the most appropriate,$80
Explanation:
Contribution implies the portion of sales price which contributes towards recovering the fixed costs and by extension to net income after fixed cost has been deducted.
The contribution per unit can be computed by deducting variable cost per unit from selling price per unit:
Selling price $100
variable cost ($20)
Contribution $80
Option A is strictly the selling price,hence it is wrong
Options C& D are out of context as they cannot be related to the scenario
