Northern Star sells several products. Information of average revenue and costs is as​follows:
Selling price per unit.......................$21.00
Variable costs per unit:
Direct material...............................$6.00
Direct manufacturing labor................$1.70
Manufacturing overhead...................$0.60
Selling costs.................................$2.00
Annual fixed costs.....................$100,000
The company sells 14,000 units at the end of the year.
1. The contribution margin per unit is _____
2. If direct labor and direct material costs increase by $1 each, contribution margin ____