Problem: Module $5$ Textbook Problem $5$

Learning Objective: $5-5$ Prepare an income statement using the contribution margin approach

Estrada Corporation produced $210,000$ watches that it sold for $$21$ each. The company determined that fixed manufacturing cost per

unit was $$8$ per watch. The company reported a $$1,470,000$ gross margin on its financial statements.

Required

Determine the variable cost per unit, the total variable product cost, and the total contribution margin.

Answer is complete but not entirely correct.