Lmn company produces a product that sells for $1. the company has production costs of $600,000, half of which are fixed costs. assuming production and sales of 750,000 units, the contribution margin per unit is $

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Lmn company produces a product that sells for $1. the company has production costs of $600,000, half of which are fixed costs. assuming production and sales of 750,000 units, the contribution margin per unit is $

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Unitary Contribution Margin = $ 0.6

Explanation:

Provide the following information:

LMN Company produces a product that sells for $ 1. The company has production costs of $ 600,000, half of which are fixed costs. Assuming production and sales of 750,000 units.

Variable cost = 600,000 / 2 = $ 300,000

Unitary variable cost = 300,000 / 750,000 = $ 0.4

Unitary Contribution Margin = 1 – 0.4 = $ 0.6

Total contribution margin = $ 450,000