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Question
Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:
Production Cost Data
Direct materials
$153,000
Direct labor
$110,500
Variable manufacturing overhead
$204,000
Fixed manufacturing overhead
$255,000
Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labor is a variable cost.
The contribution margin per unit was
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