Contribution per unit from sales ratio and budgeted figures

Steps:

• Calculate total contribution: 60% of budgeted sales $240,000 =$144,000.
• Determine sales per unit: $240,000 ÷ 40,000 units =$6 per unit.
• Compute contribution per unit: 60% × $6 =$3.60 (or $144,000 ÷ 40,000 units =$3.60).

Why A is correct:

• Contribution per unit equals contribution sales ratio times selling price per unit, yielding $3.60 as the precise result.

Why the others are wrong:

• B: Incorrect; $3.75 arises from misapplying ratio to production costs, not sales.
• C: Wrong; $9.60 overstates by treating ratio as applied to total costs instead of sales.
• D: Erroneous; $10.00 confuses sales per unit with contribution, ignoring the 60% ratio.

Final answer: A