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What is the total contribution if a company sells 300 units with a contribution

Practice Questions

Q1

What is the total contribution if a company sells 300 units with a contribution margin of $40 per unit?

$12,000
$10,000
$15,000
$8,000

Questions & Step-by-Step Solutions

What is the total contribution if a company sells 300 units with a contribution margin of $40 per unit?

Step 1: Identify the contribution margin per unit, which is given as $40.
Step 2: Identify the number of units sold, which is given as 300.
Step 3: Multiply the contribution margin per unit by the number of units sold: $40 * 300.
Step 4: Calculate the result of the multiplication, which is $12,000.
Step 5: The total contribution is $12,000.

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