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oslo company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):

Respuesta :

Contribution margin per unit =

Contribution margin per unit =(Sales - Variable Expenses) / 1,000

= (22,400 - 12,000) / 1,000

= 9,600 / 1,000 = 9.60

What is Contribution margin ?

The contribution margin displays the total amount of revenue available after variable costs to pay for fixed expenditures and turn a profit for the business, according to Knight. You might conceive of this as the portion of sales that helps to cover fixed costs.

  • Understanding how sales, varying costs, and fixed costs all affect operating profit is made easier with the help of contribution margin. It provides a means for business owners to gauge how different sales volumes may impact profitability. It can be computed at the individual or overall level and expressed as a dollar amount or a percentage.

Learn more about Contribution margin here:

https://brainly.com/question/24881206

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