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    Landes Excavating Company: Contribution margin per unit

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    The Landes Excavating Company experienced the following costs in 2007: Direct materials $1.75/unit Direct labor $2.00/unit Variable manufacturing overhead $2.50/unit Variable selling $.75/unit Fixed manufacturing overhead $50,000 Fixed selling $15,000 Fixed administrative $5,000 During the year the company manufactured 100,000 units and sold 80,000 units. If the average selling price per unit was $22.65 what is the company's contribution margin per unit?

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    https://brainmass.com/business/accounting/landes-excavating-company-contribution-margin-unit-262045

    Solution Summary

    Response provides the steps for calculating Contribution Margin per unit

    $2.19

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