Question

[The following information applies to the questions displayed below.]

Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	6.10
Direct labor	$	3.60
Variable manufacturing overhead	$	1.40
Fixed manufacturing overhead	$	4.00
Fixed selling expense	$	3.10
Fixed administrative expense	$	2.10
Sales commissions	$	1.10
Variable administrative expense	$	0.55

13. If the selling price is $22.10 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer 1

contribution margin per unit
Selling price per unit	$    22.10
Less:
Direct materials	$       6.10
Direct labor	$       3.60
Variable manufacturing overhead	$       1.40
Sales commissions	$       1.10
Variable administrative expense	$       0.55
contribution margin per unit	$       9.35
Please upvote.