The conversation between human and AI assistant.
How do I calculate CM/unit for this question?
Sure. The question is asking for the contribution margin per unit for a product that sells for $20, has variable costs of $15 per unit, and fixed costs of $25,000.
The contribution margin can be calculated by subtracting the variable costs per unit from the selling price per unit. So, for this question, the contribution margin per unit would be $5.