Denison Corporation has been producing and selling 60,000 skillets a year. The company has the capacity to produce 75,000 skillets with its present facilities. The following information is also available: $\begin{array}{ll}
\text { Selling price per unit } & \$ 44 \
\text { Variable costs per unit: } & \
\text { Manufacturing } & 19 \
\text { Selling and Adminis trative } & 15\\text { Fixed costs in total: }\
\text { Manufacturing } & \$ 220,000 \
\text { Selling and A dminis trative } & 20,000
\end{array}$ is the variable cost per unit for a skillet using the contribution approach.

Question

Quizplus · Accepted Answer

The variable cost per unit is the sum of variable manufacturing costs and variable selling and administrative costs, which is $19 + $15 = $34.

Denison Corporation Has Been Producing and Selling 60,000 Skillets a Year