Question

Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:
Average cost per unit


Direct Materials $4.60

Direct Labor $4.20

Variable manufacturing overhead $1.40

Fixed manufacturing overhead $8.00

Fixed selling expense $3.20

Fixed administrative expense $1.70

Sales commissions $0.70

Variable administrative expense $0.65

If the selling price is $23.00 per unit, the contribution margin per unit sold is closest to:


A: $17.45

B: $0.30

C: $14.65

D: $5.80

Answer 1

I thank the answer is $17.45