Emeka Company Has Provided the Following Information Calculate the Contribution Margin Per Unit

question 129

Multiple Choice

Emeka Company has provided the following information: $$\begin{array} { | l | r | } \hline \text { Sales price per unit } & \$ 52 \\\hline \text { Variable cost per unit } & 16 \\\hline \text { Fixed costs per month } & \$ 14,000 \\\hline\end{array}$$ Calculate the contribution margin per unit.

• A) $36.00
• B) $52.00
• C) $68.00
• D) $16.00

---

Definitions:

Administrative Expenses

Overhead or operating expenses associated with the day-to-day operations of a business, excluding production costs.

Cost Formula

An equation used to predict the total cost associated with the production or delivery of goods and services.

Administrative Expenses

Expenses related to the general operation of a company, including salaries of executives, costs of administrative facilities, and office supplies, not directly tied to production.

Net Operating Income

A profitability metric that measures the amount of income generated from a company's operational activities before taxation and interest expenses.