The following cost information is available for a single product manufactured and sold by Savannah Drip-Dry

Variable costs: Direct materials $ 10 Fixed costs (in total):

(Per unit) Direct labor 12 Fixed overhead $ 540,000

Variable overhead 3 Fixed selling 360,000

Variable selling 2

Units sell for $36 each, and the firm is currently manufacturing and selling 120,000 units.

1. Determine the contribution margin per unit and the contribution margin ratio (percentage).

2. Calculate the firm