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What is the contribution margin per unit sold

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Reference no: EM133162148

Question - The following cost information pertained to the Violin Division of Stringing Music Company and was based on monthly demand and sales of 100 units:

Per-Unit Costs

Variable production costs:

Direct materials $240

Direct labor 270

Variable factory overhead 180

Fixed production costs:

Depreciation (equipment) 140

Factory rent 168

Other 36

Total production cost $1,034

Variable selling & administrative costs $48 per unit

Fixed selling & administrative costs $60 per unit

Given a normal selling price per unit of $1,110, what is the contribution margin per unit sold for recurring (i.e., normal) sales?

Reference no: EM133162148

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