Sheffield has determined the contribution margin ratio of a product to be 50%. Its selling price is $40, while its costs consist of two variable costs and one fixed cost. The sole fixed cost is a selling and administrative cost. The variable selling and administrative cost is $3.20/unit. 

What is the variable manufacturing cost per unit? 

Variable manufacturing cost =  $ ? per unit 

 

What is the gross margin of one unit of this product if there are no fixed manufacturing costs? 

 

Gross margin = $ ? per unit

 

What is the gross margin percentage for this product?

Gross margin =  ?%

Answer rating: 100% (QA)

To determine the variable manufacturing cost per unit we need to use the contribution margin ratio f... View the full answer