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Unit Contribution Margin

A company that makes organic fertilizer has supplied the following data:

Bags produced and sold 240,000
Sales revenue 1,896,000
Variable manufacturing expense 804,000
Fixed manufacturing expense 520,000
Variable selling and administrative expense 180,000
Fixed selling and administrative expense 270,000
Net operating income 122,000

Reference: 6-7

The company's unit contribution margin is closest to:

3.80
4.55
4.10
7.15

Solution Summary

The solution explains how to calculate unit contribution margin

$2.19