Follett Company expects to produce and sell 1,000 units next month. Data on costs follows: $\begin{array}{l}
\text { Per unit costs: }\
\begin{array}{ll}
\text { Sales price } & \$ 10 \
\text { Variable manufacturing costs } & \$ 1.50 \
\text { Variable selling costs } & \$ 0.50
\end{array}\
\text { Total costs: }\
\text { Fixed manufacturing costs } & \$ 3,000 \
\text { Fixed selling costs } & \$ 150
\end{array}$ A. Calculate the variable cost per unit.
B. Calculate contribution margin per unit.
C. Calculate the variable cost ratio.
D. Calculate the contribution margin ratio.

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The Answer of Follett Company expects to produce and sell 1,000 units next month. Data on costs follows: $\begin{array}{l}
\text { Per unit costs: }\
\begin{array}{ll}
\text { Sales price } & \$ 10 \
\text { Variable manufacturing costs } & \$ 1.50 \
\text { Variable selling costs } & \$ 0.50
\end{array}\
\text { Total costs: }\
\text { Fixed manufacturing costs } & \$ 3,000 \
\text { Fixed selling costs } & \$ 150
\end{array}$ A. Calculate the variable cost per unit.
B. Calculate contribution margin per unit.
C. Calculate the variable cost ratio.
D. Calculate the contribution margin ratio.

Follett Company Expects to Produce and Sell 1,000 Units Next