Rocky Mountain Bottling Company Produces a Soft Drink That Is

Multiple Choice

Rocky Mountain Bottling Company produces a soft drink that is sold for a dollar.At production and sales of 800,000 units,the company pays $600,000 in production costs,half of which are fixed costs.At that volume,general,selling,and administrative costs amount to $250,000,of which $70,000 are fixed costs.What is the amount of contribution margin per unit?

A) $0.40
B) $0.5375
C) $0.25
D) None of these is correct.