Question
The following cost information pertained to the Violin Division of Stringing Music Co. and was based on monthly demand and sales of 100 units: Per-Unit
The following cost information pertained to the Violin Division of Stringing Music Co. and was based on monthly demand and sales of 100 units: Per-Unit Costs Variable production costs: Direct materials $120 Direct labor 150 Variable factory overhead 60 Fixed production costs: Depreciation (equipment) 20 Factory rent 48 Other 12 Total production cost $410 Variable selling & administrative costs $24 per unit Fixed selling & administrative costs $36 per unit Given a normal selling price per unit of $750, what is the contribution margin per unit sold for recurring (i.e., normal) sales? $336. $316. $276. $396. $630.
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