Answer:
$23 per unit
Explanation:
Given that,
Selling price = $35
sales = $35,000,
variable manufacturing costs = $8,000,
Fixed manufacturing costs = $2,000,
Variable selling and administrative costs = $4,000
Fixed selling and administrative costs = $2,000
Number of units sold:
= Sales ÷ Selling price
= $35,000 ÷ $35
= 1,000
Contribution margin:
= Sales - Variable manufacturing costs - Variable selling and administrative costs
= $35,000 - $8,000 - $4,000
= $23,000
Contribution margin per unit:
= Contribution margin ÷ Number of units
= $23,000 ÷ 1,000
= $23 per unit
