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Question - Krepps Corporation produces a single product. Last year, Krepps manufactured 28,000 units and sold 22,500 units. Production costs for the year were as follows:
Direct materials 229,600
Direct labor 134,400
Variable manufacturing overhead 215,600
Fixed manufacturing overhead 336,000
Sales totaled $1,046,250 for the year, variable selling and administrative expenses totaled $112,000, and fixed selling and administrative expenses totaled $201,600. There was no beginning inventory. Assume that direct labor is a variable cost. Determine the contribution margin per unit?
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