Question

Tirrt Corporation has provided the following Information Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Cost per Unit Cost per Period $7.55 $3.95 $1.60 $24,500 $1.10 $ 8,900 If the selling price is $28.20 per unit, the contribution margin per unit sold is closest to: 1 0 0 0 0

Answer 1

contribution margin =          sales price per unit - variable cost per unit
Selling price				28.2
Variable cost per unit
Direct materials			7.55
Direct labor			3.95
Variable manufacturing overhead			1.6
variable administrative expense			0.65
Sales commission			1.1
total variable cost per unit				14.85
contribution margin per unit				13.35	answer