• General Electric Company manufactures various electrical appliances. For its latest refrigerator model, the company incurred the following costs:
  • Direct Materials: $500 per unit
  • Direct Labor: $200 per unit
  • Variable Manufacturing Overhead: $100 per unit
  • Fixed Manufacturing Overhead: $1,500,000
  • Number of Units Produced: 10,000 Calculate the total manufacturing cost per unit and determine the contribution margin per unit if the selling price is $1,000 per unit.