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The income statement for Thomas Manufacturing Company for 2011 is as follows: Sales (10,000 units) $120,000 Variable expenses 72,000 Contribution margin $ 48,000 Fixed expenses
The income statement for Thomas Manufacturing Company for 2011 is as follows:
Sales (10,000 units) | $120,000 |
Variable expenses | 72,000 |
Contribution margin | $ 48,000 |
Fixed expenses | 36,000 |
Operating income | $ 12,000 |
What is the contribution margin per unit?
a. | $7.20 |
b. | $1.20 |
c. | $4.80 |
d. | $120,000 |
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