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What is the contribution margin per unit

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Question - Newman Company expects to produce and sell 2,000 units in the next month. The data on costs are as follows:

Per-unit costs:

Selling price $40

Variable manufacturing costs 10

Variable selling costs 6

Total costs:

Fixed manufacturing costs $16,000

Fixed selling costs 8,000

Required -

A. What is the variable cost per unit?

B. What is the contribution margin per unit?

C. What is the variable cost ratio?

D. What is the contribution margin ratio?

Reference no: EM133144203

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