McCallen Company expects to produce and sell 500 units next month. Data on costs follows:

Per unit Costs:

Selling price $8

Variable manufacturing costs $2.75

Variable selling costs $0.25

Total costs:

Fixed manufacturing costs $1,000

Fixed selling costs $ 125

A. What is the variable cost per unit?

$

B. What is contribution margin per unit?

$

C. What is the variable cost ratio? Round your answer to one decimal place.

%

D. What is the contribution margin ratio? Round your answer to one decimal place.

%