Computation of contribution per unit for various models.
Person Company makes two types of backpacks. Data for the company's activity during a typical month are presented below:
|
|
School Model
|
Hiker Model
|
|
Sales Unit
|
$40,000
|
$40,000
|
|
Selling price per unit
|
$6
|
$18
|
|
Variable expense per unit
|
$2
|
$10
|
The company's total fixed expenses are $80,000. There are no beginnings or ending inventories. Required:
What is the per unit contribution margin for each of the two models?