The Selling Price of a Unit Is $20 and the Variable

question 83

Multiple Choice

The selling price of a unit is $20 and the variable product cost per unit is $14.In addition, a sales commission of 5% is paid on each sale.If the variable product cost per unit increases by 1%, what will be the new contribution margin per unit?

• A)$4.86
• B)$5.10
• C)$5.16
• D)$6.00

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