Carla Vista Company has developed a new product that will be marketed for the first time next year. The product will have variable costs of $39 per unit. Although the marketing department estimates that 59,850 units could be sold at $59 per unit, Carla Vistas management has allocated only enough manufacturing capacity to produce a maximum of 42,750 units a year. The fixed costs associated with the new product are budgeted at $769,500 for the year. Carla Vista is subject to a 40% tax rate.

(a1)

Calculate contribution margin per unit.

Contribution margin per unit

$