Reyes Company produces a product that sells for $50. Variable manufacturing costs are $22 per unit. Fixed manufacturing costs are $7 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A sales commission of 10% of the selling price is paid on each unit sold. The contribution margin per unit is:

Question

Quizplus · Accepted Answer

The Answer of Reyes Company produces a product that sells for $50. Variable manufacturing costs are $22 per unit. Fixed manufacturing costs are $7 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A sales commission of 10% of the selling price is paid on each unit sold. The contribution margin per unit is:

Reyes Company Produces a Product That Sells for $50