Contribution Margin

United Merchants ComContribution Margin

United Merchants Company sells $25,000$ units at $$22$ per unit. Variable costs are $$13\mathrm{.}86$ per unit, and fixed costs are $$114,000.$

Determine $($a$)$ the contribution margin ratio, $($b$)$ the unit contribution margin, and $($c$)$ operating income.pany sells $25,000$ units at $$22$ per unit. Variable costs are $$13\mathrm{.}86$ per unit, and fixed costs are $$114,000.$