A Manufacturing Company Is Considering Producing a New Product

Multiple Choice

A manufacturing company is considering producing a new product. The variable cost of the new product is $60 per unit, and the total fixed costs are $75,000 for a month. The company could produce 1,500 units per month, and sell the product for $125 each. Calculate the unit contribution margin.

A) 65
B) 50
C) 60
D) 125
E) 80