Units sold = Sales / Selling price
= $30,000 / $30
= 1,000
Total variable cost = $5,000 + $4,000 = $9,000
Variable cost per unit = $9,000 / 1,000 = $9 per unit
Contribution margin per unit = $30 - $9 = $21
2nd option.
At its $30 selling price, Atlantic Company has sales of $30,000, variable manufacturing costs of $5,000,...
At its $30 selling price, Atlantic Company has sales of $30,000, variable manufacturing costs of $6,000, fixed manufacturing costs of $2,000, variable selling and administrative costs of $6,000 and fixed selling and administrative costs of $2,000. What is the company's contribution margin per unit?
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