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g Tirri Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.30 Direct labor $ 3.45 Variable manufacturing overhead $ 1.35 Fixed manufacturing overhead $ 24,000 Sales commissions $ 1.10 Variable administrative expense $ 0.65 Fixed selling and administrative expense $ 8,400 If the selling price is $27.70 per unit, the contribution margin per unit sold is closest to: Multiple Choice $13.85 $16.95 $10.40 $6.55

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Answer:

$13.85

Explanation:

Calculation for what the contribution margin per unit sold is closest to:

Selling price $27.70 per unit,

Less Direct materials ($ 7.30)

Less Direct labor ($ 3.45)

Less Variable manufacturing overhead ($ 1.35 )

Less Sales commissions ($ 1.10)

Less Variable administrative expense ($ 0.65)

Contribution margin per unit sold $13.85

Therefore the contribution margin per unit sold is closest to: $13.85

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