Homework answers / question archive / Calculating Contribution Margin - Selling price of gadget is $14, variable cost is $6, what is the total contribution margin (in $) if 900 units are sold? What is the contribution margin in %? What is the contribution margin per unit? Discuss the nature and purpose of derivative products

Calculating Contribution Margin - Selling price of gadget is $14, variable cost is $6, what is the total contribution margin (in $) if 900 units are sold? What is the contribution margin in %? What is the contribution margin per unit? Discuss the nature and purpose of derivative products

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1. Calculating Contribution Margin

   - Selling price of gadget is $14, variable cost is $6, what is the total contribution margin (in $) if 900 units are sold?

   What is the contribution margin in %?

   What is the contribution margin per unit?

2. Discuss the nature and purpose of derivative products. In your answer consider the different types of derivative products, the risks managed by these products and the differences between exchange-traded contracts and over-the-counter contracts.