Question: Total Fixed Costs = $10,000 Contribution Margin per unit = Selling price per unit - Variable costs per unit Selling price = $28 Variable costs:

Total Fixed Costs = $10,000 Contribution Margin per unit = Selling price per unit - Variable costs per unit Selling price = $28 Variable costs: $5 in direct materials $3 in direct labor $2 in utilities $10 in machinery rent ($20,000 per month / 2,000 pots per month)

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