Vernon Corporation produced 204,000 watches that it sold for $18 each during year 2 . The company determined that fixed manufacturing cost per unit was $8 per watch. The company reported a $816,000 gross margin on its year 2 financial statements. Required Determine the variable cost per unit, the total variable cost, and the total contribution margin. Information concerning a product produced by Fanning Company appears as follows. Required Determine the following: a. Contribution margin per unit. b. Number of units that Fanning must sell to break even. c. Sales level in units that Fanning must reach to earn a profit of $185,000