What is the contribution margin per unit sold

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Reference no: EM131556466

Martinez Company’s relevant range of production is 9,900 units to 14,900 units. When it produces and sells 12,400 units, its unit costs are as follows:

Amount Per Unit

Direct materials $ 6.80

Direct labor $ 4.30

Variable manufacturing overhead $ 1.60

Fixed manufacturing overhead $ 4.80

Fixed selling expense $ 3.80

Fixed administrative expense $ 2.20

Sales commissions $ 1.20

Variable administrative expense $ 0.45

1) If the selling price is $22.80 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)

2) If 10,400 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production.

3) If 10,400 units are produced, what are the total amount of indirect manufacturing costs incurred to support this level of production?

4) What total incremental cost will Martinez incur if it increases production from 12,400 to 12,401 units? (Round your answer to 2 decimal places.)

Reference no: EM131556466

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