Acement manufacturer has supplied the following data: tons of cement produced and sold 225,000 sales revenue $1,035,000 variable manufacturing expense $421,000 fixed manufacturing expense $280,000 variable selling and administrative expense $29,000 fixed selling and administrative expense $220,000 net operating income $85,000 what is the company's unit contribution margin?

$2.6 per unit.

Explanation:

Given that,

Tons of cement produced and sold = 225,000

Sales revenue = $1,035,000

Variable manufacturing expense = $421,000

Fixed manufacturing expense = $280,000

Variable selling and administrative expense = $29,000

Fixed selling and administrative expense = $220,000

Net operating income = $85,000

Sales price per unit:

=

=

= $4.6 per unit

Variable cost per unit:

=

=

= $2 per unit

Contribution margin = Sales price per unit - Variable cost per unit

                                  = $4.6 - $2

                                  = $2.6 per unit

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