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[The following information applies to the questions displayed below.] Martinez Company’s relevant range of production is...

[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.)

Homework Answers

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
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