Gallagher Company sells a product for $ 50 per unit. Variable costs are $ 30 per unit,

Question:

Gallagher Company sells a product for $ 50 per unit. Variable costs are $ 30 per unit, and fixed costs are $ 2,000 per month. The company expects to sell 500 units in September. Calculate the contribution margin per unit, in total, and as a ratio.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...