Question: can u explain why need to multiply 300: For the Basic model, the contribution margin per unit is $300 - ($5,715,000/$18,987,000*300 + $3,430,000/$18,987,000*300 + $3,112,000/$18,987,000*300)
can u explain why need to multiply 300: For the Basic model, the contribution margin per unit is $300 - ($5,715,000/$18,987,000*300 + $3,430,000/$18,987,000*300 + $3,112,000/$18,987,000*300) = $76. The contribution margin per MH is $76/0.80 = $95/MH
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
