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Problem - Macy Corporation's relevant range of activity is 6,300 units to 13,500 units. When it produces and sells 9,900 units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials $5.20
Direct labor $3.65
Variable manufacturing overhead $1.65
Fixed manufacturing overhead $2.90
Fixed selling expense $0.95
Fixed administrative expense $0.65
Sales commissions $0.90
Variable administrative expense $0.55
If the selling price is $29.00 per unit, compute the contribution margin per unit sold?
a) $10.50
b) $6.70
c) $20.15
d) $17.05
Unit 5 Management Accounting Assignment help and solution, Management accounting systems and techniques, H/508/0489, level 4 - University Center Colchester
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