Deja Corporation has provided the following information: Cost per Period Cost per Unit $ 7

Accounting Nov 26, 2020

Deja Corporation has provided the following information: Cost per Period Cost per Unit $ 7.50 $ 3.85 $ 155 $ 24,400 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $ 1.05 $ 0.60 $ 8,800 If the selling price is $28.10 per unit, the contribution margin per unit sold is closest to $10.70 None of these answers $16.75 $7.05 $13.55

Expert Solution

Answer-

Contribution margin per unit = Selling price - (Direct materials + Direct labor + Variable manufacturing overhead + Sales commissions + Variable administrative expense)

= $28.10 - ($7.50 + $3.85 + $1.55 + $1.05 + $0.60)

=$28.10- $14.55

= $13.55

Hence, the correct option is e-$13.55

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