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[The following information applies to the questions displayed below.] Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and
[The following information applies to the questions displayed below.]
Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:
Average Cost per Unit | |||
Direct materials | $ | 6.10 | |
Direct labor | $ | 3.60 | |
Variable manufacturing overhead | $ | 1.40 | |
Fixed manufacturing overhead | $ | 4.00 | |
Fixed selling expense | $ | 3.10 | |
Fixed administrative expense | $ | 2.10 | |
Sales commissions | $ | 1.10 | |
Variable administrative expense | $ | 0.55 | |
13. If the selling price is $22.10 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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