17 CVP computations. Wilsar Manufacturing sold 400.000 units of its product for $80 per unit in 2008. anable cost per unit is $50 and total fixed costs are $1,800,000 Calculate (a) contribution margin and (b) operating income Wilsar's current manufacturing process is labor intensive. Roderick Davidson, Wilsar's production man- ager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the annual fixed costs to $4,800,000, The variable costs are expected to decrease to $32 per unit. Wilsar expects to maintain the same sales volume and selling price next year. How would acceptance of Davidson's proposal affect your answers to (a) and (b) in requirement 1