BRAM

2. A producer sells small, portable, air conditioners for $175/unit. The producer does not have good Fixed Cost or Variable Cost data but tracked costs for the last two major sales in the table. Find the per unit contribution margin. Production costs Labor Materials Overhead Selling and admin Depreciation and other FC @2000 units @4000 units $40,000 $90,000 $70,000 $80,000 $70,000 $350,000 $80,000 $180,000 $80,000 $90,000 $70,000 $500,000 Level of Production, Q Total a. b. c. d. $17.50 $35.50 $75 $100