=+9-15 KK Relevant-cost approach to short-run pricing decisions OBJECTIVE 5 Wainwright Electronics Ltd is a business with eight product lines. Income data for one of the products (XT-107) for June 2014 are as follows:

Revenues, 200 000 units at average price of $100 each $20 000 000 Variable costs Direct materials at $35 per unit $7 000 000 Direct manufacturing labour at $10 per unit 2 000 000 Variable manufacturing overhead at $6 per unit 1 200 000 Sales commissions at 15% of revenues 3 000 000 Other variable costs at $5 per unit 1 000 000 Total variable costs 14 200 000 Contribution margin 5 800 000 Fixed costs 5 000 000 Operating income $800 000