Accounting Homework Help! How to calculate CONTRIBUTION MARGIN PER UNIT?
Accounting Homework Help! How to calculate CONTRIBUTION MARGIN PER UNIT?
Here's the problem
Tanek Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Tanek is currently operating at full capacity with limited machine time.
Sales and production information relevant to each model follows.
Product
Economy Standard Deluxe
Selling price $32 $53 $106
Variable costs and expenses $13 $19 $45
Machine hours required 0.5 0.8 1.5
Calculate contribution margin per unit.
Now I attempted it and got these answers which are wrong
Economy: $38 Standard: $42.50 Deluxe: $40.67
I have no idea what to do now! Please help!!
No Answers Posted Yet.