Martinez Company’s relevant range of production is 7, 500 units to 12, 500 units. When it produces and sells 10, 000 units, its unit costs are as follows: 13. If the selling price is $22 per unit, what is the contribution margin per unit sold?
Expert Answer
Particulars | Amount |
Sale Price | 22.00 |
Less: Material | 6.00 |
Less: Labor | 3.50 |
Less: Variable manufacturing overhead | 1.50 |
Less: Variable admin overhead | 1.00 |
Contribution Margin | 10.00 |