Joie Inc produces Product X Each unit of the product requires 02 hour of direct labour, 2 kilograms of material A, and 1 kilogram of material B The company has a production capacity of 30,000 units of Product X per year, but its current production and sales are 25,000 units per year For the current year, costs and revenues are as follows 

Price per unit of Product X $1350 

Direct labour cost per hour $1500 

Material A cost per kilogram $080 

Material B cost per kilogram $240 

Fixed factory overhead $50,000 

Variable selling and administration costs $12,500 

All other fixed expenses $37,500 7 

At the current level of production, the contribution margin per unit of Product X is 

a) $650 

b) $450

c) $680

d) $400 

e) $600

Answer rating: 100% (QA)

Answer a 650 c... View the full answer