Macy Corporation\'s relevant range of activity is 5,400 units to 12,000 units. W

Question

Macy Corporation's relevant range of activity is 5,400 units to 12,000 units. When it produces and sells 8,700 units, its average costs per unit are as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Averagee Cost per Unit $5.05 $3.50 $1.50 $4.00 $1.45 $0.50 $1.40 $0.40 If the selling price is $27.50 per unit, the contribution margin per unit sold is closest to:

Explanation / Answer

Selling price = $27.5

Variable Cost = $ 11.85

Contribution = $27.5 - $11.85

= $15.65

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