# Calculation Of Contribution Margin Per Unit

Question

Carr Company produces a single product. During the past year, Carr manufactured 33,930 units and sold 28,300 units. Production costs for the year were as follows:

Direct labor                                         \$145,899

Direct materials                                   \$288,405

Sales totaled \$1,287,650, variable selling expenses totaled \$164,140, and fixed selling and administrative expenses totaled \$206,973. There were no units in beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit would be:

a. \$18.40

b. \$19.50

c. \$13.90

d. \$24.20

Summary

The question belongs to Accounting and it discusses about calculation of contribution margin per unit.

Total Word Count 32

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