Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units.
Production costs for the year were as follows:
Production Cost Data
Direct materials $153,000
Direct labor $110,500
Variable manufacturing overhead $204,000
Fixed manufacturing overhead $255,000
Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed
selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct
labor is a variable cost.
The contribution margin per unit was
A.$32.50.
B.$25.70.
C.$27.30.
D.$17.50.
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