The costs per unit and period for Milligan Exploration for all relevant ranges of activity is as follows:

Cost per Unit Cost per Period

Selling price per unit 14.25

Direct materials 5.00

Direct labor 2.90

Variable manufacturing overhead 1.25

Fixed manufacturing overhead - $21,000

Sales commissions 1.00

Variable administrative expense 0.55

Fixed selling and administrative exp. $7,500

1. If Milligan produces 4,200 units, what is the total amount of direct manufacturing cost incurred?

2. If 5,000 units are produced by Milligan, what is the total amount of indirect manufacturing overhead cost incurred?

3. What is Milligans contribution margin per unit sold?