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Assume that a merchandiser purchases a product from a supplier for $3.00 per unit and then sells it to customers for $5.00 per unit. Ordinarily,
Assume that a merchandiser purchases a product from a supplier for $3.00 per unit and then sells it to customers for $5.00 per unit. Ordinarily, the company sell 30,000 units per year; however, it is considering lowering its price to $4.00 per unit. At the lower price, the company expects to sell 50,000 units per year. What total contribution margin did the company earn when it sold 30,000 units at a price of $5.00 per unit? Multiple Choice $150,000 $50,000 O $60,000 $90,000
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