Fixed costs are $20,570. At the break-even point, variable costs are $1.63 per unit and the sales price is $3.50 per unit. What is the contribution margin per unit.
Contribution margin per unit = Sales price per unit - variable cost per unit
= $3.50 - $1.63
= $ 1.87
Hope this helps!
Please review the answer. The correct answer is D. $180