Estrada Corporation produced 300,000 watches that it sold for $35 each during 2015. The company determined that

Question:

Estrada produced 300,000 watches that it sold for $35 each during 2015. The company determined that fixed manufacturing cost per unit was $14 per watch. The company reported a $2,700,000 gross margin on its 2015 financial statements.

Required
Determine the variable cost per unit, the total variable cost, and the total .

Contribution Margin
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