Atlanta Manufacturers Inc. is approached by a potential new customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:

Variable costs:

Direct materials $170

Direct labor 90

Manufacturing support 135

Marketing costs 85

Fixed costs:

Manufacturing support 145

Marketing costs 75

Total costs 700

Markup (40%) 280

Targeted selling price $980

What is the contribution margin per unit?

Question 7 options:

	$280
	$220
	$500
	$700