| Carr Company produces a single product. During the past year, Carr manufactured 29,650 units and sold 24,600 units. Production costs for the year were as follows: |
| Fixed manufacturing overhead | $563,350 |
| Variable manufacturing overhead | $243,130 |
| Direct labor | $145,285 |
| Direct materials | $222,375 |
| Sales totaled $1,070,100, variable selling expenses totaled $140,220, and fixed selling and administrative expenses totaled $210,515. There were no units in beginning inventory. Assume that direct labor is a variable cost. |
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The contribution margin per unit would be: I KNOW THE ANSWER IS 17.20 BUT I DONT KNOW WHY! PLEASE GIVE ME A STEP BY STEP EXPLANATION. OVERWISE I WILL NOT RATE! THANK YOU! |
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