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What is the contribution margin per unit

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Question - McCallen Company expects to produce and sell 500 units in the next month. The data on costs are as follows:

Per-unit costs:

Selling price $8.00

Variable manufacturing costs 2.75

Variable selling costs 0.25

Total costs:

Fixed manufacturing costs $1,000

Fixed selling costs 125

Required -

A. What is the variable cost per unit?

B. What is the contribution margin per unit?

C. What is the variable cost ratio?

D. What is the contribution margin ratio?

Reference no: EM133129149

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