Sales price per Scarf $22

Less: Variable cost per Scarf $15

Unit contribution margin per Scarf $______

The managerial accountant at Fancy Scarf Factory reported the price per scarf is $22. The only variable cost is $15 per scarf. The managerial accountant also reported that the sales goals were increased to 1000 scarves during the next quarter. First, compute the unit contribution margin per scarf. If fixed expenses are $5000, what is the forecasted operating income if 1000 scarves are sold in the next quarter?