Question: Product # 7 1 B sells for $ 7 5 per unit. Direct materials cost $ 1 2 , direct labor costs $ 1 0

Product #71B sells for $75 per unit. Direct materials cost $12, direct labor costs $10, and variable manufacturing overhead is 80% of direct labor costs per unit. Variable selling and administrative expenses average $5 per unit sold. If fixed manufacturing overhead is $40,000 when fixed selling and administrative expenses total $50,000, determine the contribution margin when 7,500 units are produced and sold.

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