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Frost-Byte is planning to introduce a new product that will sell for $12 a unit. A total of 100,000 units will be produced during the

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Frost-Byte is planning to introduce a new product that will sell for $12 a unit. A total of 100,000 units will be produced during the first year. Direct materials are projected to be $100,000 and labour costs amount to $80,000. The wage rate is $8 per hour and 10,000 labour hours are projected. Manufacturing overhead costs have not been estimated for the new product, but monthly data on total production and overhead costs for the past months have been analyzed using simple linear regression. The following results were derived from simple regression and provided the basis for overhead cost estimates for the new product. The coefficient of independent variable represents the variable overhead rate. The cost driver for variable nuarhad ic dirart lahnuir hnure What is the expected unit contribution margin to be earned during the first year on 100,000 units of the new product? (Assume that all marketing and admin costs are fixed) Multiple Choice $9.78 $9.56 some other answer $6.40 $8.18

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