For price 50 and variable cost 20, what is the per-unit contribution margin and its ratio?

For price 50 and variable cost 20, what is the per-unit contribution margin and its ratio?

• A. CM per unit = 30; CM ratio = 0.60
• B. CM per unit = 50; CM ratio = 1.00
• C. CM per unit = 20; CM ratio = 0.40
• D. CM per unit = 30; CM ratio = 0.50

Answer: (A)