Rundle Corporation produced 208,000 watches that it sold for $17 each during year 2. The company determined that fixed manufacturing cost per unit was $7 per watch. The company reported a $832,000 gross margin on its year 2 financial statements.

Required

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

a. Variable cost per unit:

b. Total variable product cost:

c. Total contribution margin: