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Unit Contribution Margin

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Drake Company's income statement for the most recent year appears below:

Sales (26,000 units) 650,000
Less: Variable expenses 442,000
Contribution margin 208,000
Less: Fixed expenses 234,000
Net operating loss (26,000)

Reference: 6-3

The unit contribution margin is:

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Solution Summary

The solution explains how to calculate unit contribution margin.

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