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How to solve for contribution margin per unit? Glocker Company makes three products in a single facility. These products have the following unit product costs:

How to solve for contribution margin per unit?

Glocker Company makes three products in a single facility. These products have the following unit product costs:

Product
A B C
Direct materials $ 33.90 $ 50.40 $ 56.80
Direct labor $ 21.30 $ 23.90 $ 14.70
Variable manufacturing overhead $ 2.30 $ 1.70 $ 0.40
Fixed manufacturing overhead 6.40 4.00 4.60
Unit product cost $63.90 $80.00 $76.50
Additional data concerning these products are listed below.
Mixing minutes per unit 1.10 0.70 0.20
Selling price per unit $ 69.00 $ 91.40 $ 84.90
Variable selling cost per unit $ 1.70 $ 2.20 $ 2.00
Monthly demand in units 3,100 4,400 2,400

The mixing machines are potentially the constraint in the production facility. A total of 6,870 minutes are available per month on these machines. Direct labor is a variable cost in this company.

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