.. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 36 per unit $ 26 per unit $ 12 per unit $ 54,000 per year $ $ 2 per unit $ 21,000 per year Exercise 6-6 (Algo) Computing contribution margin at different production levels LO P2 The company sells its product for $160 per unit Compute contribution margin using variable costing assuming the company produces and sells 2,000 units and (b) produces 2.700 units and sells 2,000 units () 2,000 Units Produced and (b) 2,700 Units Produced 2,000 Units Sold and 2,000 Units Sold 320,000 5 320,000 Contribution margin using variable costing Sales Variable expenses Variable cost of goods sold Variable selling and administrative expenses 148.000 148.000 24.000 24 000 Contribution margin 196.000 196.000