Question & Answer: The , LO1-2, LO1-3, LO1-4, LO1-5, LO1-6)0 units, Foundational 15 (L01-1 P…..

The , LO1-2, LO1-3, LO1-4, LO1-5, LO1-6) The following information applies to the questions displayed below Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, Foundational 15 (L01-1 Part 13 of 15 its average costs per unit are as follows: Average Cost 0.26 points Direct materials Direct labor Variable manufacturing overhead rixed manufacturing overhead Fixed selling expense Pixed administrative expense Sales commissions Variable administrativeexpense Unit $5.60 $3.10 $1.40 $4.00 $2.60 $2.20 $1.20 $0.45 Foundational 1-13 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)

Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units. 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) Contribution margin per unit

Expert Answer

Selling Price Per Unit	$		21.60
Direct Material	$	5.60
Direct Labor	$	3.10
Variable Manufacturing Overhead	$	1.40
Variable Administrative Expense	$	0.45
Sales Commission	$	1.20
Variable Cost Per Unit	$		11.75
Contribution Margin (Selling Price Per Unit – Variable Cost Per Unit			9.85

Hence, the correct answer is $ 9.85

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