Phillips Company manufactures air-conditioning units for commercial buildings and has noticed considerable variation in shipping expenses from month to month as per the data below:

If the air conditioners have an average sales price of 5,000, variable manufacturing costs are $2,500 per unit, variable manufacturing overhead is $500 per unit, and variable selling and administration costs (excluding shipping) are $200 per unit, what is the contribution margin per unit?

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Total Shipping Expense Units Shipped Month January... February. $2,200 $3,100 4 4 $2,600 $1,500 $2,200 March.... April.. May June $3,000 $3,600 July.... 8.