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A consumer product has a retail price of $1.50. Retail margins on the product ar

ID: 1183056 • Letter: A

Question

A consumer product has a retail price of $1.50. Retail margins on the product are 35%, while wholesalers take a 15% margin. Variable manufacturing costs for the product are $0.08 per unit. Fixed manufacturing costs are $1.2 million. The manufacturer's salespeople are paid entirely by a 10% commission on the manufacturer's selling price. Shipping, breakage, and insurance costs are $0.03 per unit. What is the manufacturer's unit contribution margin? Choose 1 answer A. $0.52 B. $0.57 C. $0.63 D $0.74

Explanation / Answer

B. $0.57

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