Question

13. If the selling price is $21.60 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer 1

Answer:

$11.05

Explanation:

Note: The full question is attached as picture below

Contribution margin per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = Selling price per unit - (Direct materials + Direct labor + Variable manufacturing overheads+ Variable administrative expense)

Contribution margin per unit = $21.60 - ($5.60 + $3.10 + $1.40 + $0.45)

Contribution margin per unit = $21.60 - $10.55

Contribution margin per unit = $11.05