Reference no: EM132511077

Oriole Company produces a molded briefcase that is distributed to luggage stores. The following operating data for the current year has been accumulated for planning purposes.

Sales price$41.17

Variable cost of goods sold13.17

Variable selling expenses11.77

Variable administrative expenses4.17

Annual fixed expenses Overhead$9,360,000

Selling expenses1,860,000

Administrative expenses3,900,000

• Oriole can produce 1,800,000 cases a year. The projected net income for the coming year is expected to be $2,160,000. Oriole is subject to a 40% income tax rate.
• During the planning sessions, Oriole's managers have been reviewing costs and expenses. They estimate that the company's variable cost of goods sold will increase 15% in the coming year and that fixed administrative expenses will increase by $180,000. All other costs and expenses are expected to remain the same.

Question 1: Calculate contribution margin per unit for the coming year. (Round contribution margin per unit to 2 decimal places, e.g. 0.38.)