Answer:
unitary contribution margin= $2.52
Explanation:
<u>First, we need to calculate the total variable cost:</u>
Total variable cost= Variable manufacturing expense + Variable selling and administrative expense
Total variable cost= 560,000 + 260,000
Total variable cost= $820,000
<u>Now, the unitary variable cost and the selling price:</u>
unitary variable cost= 820,000 / 520,000= $1.58
Selling price= 2,132,000 / 520,000= $4.1
<u>Finally, the unitary contribution margin:</u>
unitary contribution margin= selling price - unitary variable cost
unitary contribution margin= 4.1 - 1.58
unitary contribution margin= $2.52
