MERCEDES-BENZ Industries manufactures a product that is used as a subcomponent by other manufacturers. It has the following price and cost structure: Q: What will the contribution margin per unit be if the company sells 10,000 units?

Selling price $300 Costs Direct materials $40 Direct labor 30 Variable manufacturing overhead 24 Fixed manufacturing overhead 60 Variable selling 6 Fixed selling and administrative 20 (180) Operating margin $120