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Forums › FIA Forums › accounting for costs
Q1: Budgeted sales of a company’s single product in a period are 20,000 units producing a total contribution of $180,000 at a selling price of $24 per unit. Fixed costs are $6 per unit based on the budgeted sales quantity. What is the budgeted variable cost per unit? $
Contribution per unit = 180,000/20,000 = 9
Contribution = SP – VC
Therefore VC = 24 – 9 = 15
