Manufacturing one tube of lipstick requires:

• • $0.50 worth of raw materials like wax, shea butter, dyes, and plastic for the tube;
  • $0.20 of electricity to run the machine to produce one tube; and
  • $0.30 worth of labor to make one tube of lipstick
• What is the variable cost per unit of lipstick?
• If the total of 10,000 tubes of lipstick are manufactured using the current variable costs:
  • What is the contribution margin per unit in $?
  • What is the contribution margin ratio in %?