Company sells each bag of food for $10. The Variable Expense per bag of food is $6. Fixed Expenses per month total $300. Company currently sells 100 units of dog food. If Company were to raise its selling price by $3, what would be the new Contribution Margin per unit for Company ?

Company currently makes and sells one type and size of dog food, a 16 ounce bag of all-natural freeze-dried chicken.

Use the following data as your starting point for each question on this quiz: Company sells each bag of food for $10. The Variable Expense per bag of food is $6. Fixed Expenses per month total $300. Company currently sells 100 units of dog food. If Company were to raise its selling price by $3,

what would be the new Contribution Margin per unit for Company ?

$700

$525

$7

$13