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Problem 1: ABC produces a product that sells for $20. Variable manufacturing costs are $8 per unit. Fixed manufacturing costs are $3 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A selling commission of 10% of the selling price is paid on each unit sold. What is the contribution margin per unit?
Select one:
a. $6
b. $3
C. $12
d. $10
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