48,000, $2.00 per unit ,$2.10 per unit.
What does a flexible budget report for variable costs look like? What does contribution margin mean?
- A flexible budget report for variable costs is a report that shows the different costs and what they are for.
- This type of report is important because it helps managers understand how much they have spent on each item.
- The flexible budget report should be used to show the cost of each item and whether or not it has been used.
- It also needs to show how much money the company has spent on each item, and if it has been used or not.
Contribution margin:
- Contribution margin is a percentage of the total revenue. It is often used to measure the profitability of a product or service.
- The contribution margin is calculated by subtracting variable costs from revenues and dividing the result by the revenue.
- It measures how much each unit contributes to the company’s bottom line, as opposed to how much it costs to produce that unit.
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