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Northern Star sells several products. Information of average revenue and costs is as follows: Selling price per unit $ 22.00 Variable costs per unit: Direct
Northern Star sells several products. Information of average revenue and costs is as follows: Selling price per unit $ 22.00 Variable costs per unit: Direct material $ 5.00 Direct manufacturing labor $ 1.70 Manufacturing overhead $ 0.40 Selling costs $ 2.00 Annual fixed costs $ 100 000 The company sells 12 000 units at the end of the year. The contribution margin per unit is ________.
A. $ 14.60 B. $ 12.90 C. $ 16.60 D. $ 17.00
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