Problem:
Leeds Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $25 Variable costs per unit: Direct material $4 Direct manufacturing labor $1.70 Manufacturing overhead $0.50 Selling costs $2.10 Annual fixed costs $100,000 The company sells 12,000 units at the end of the year. The contribution margin per unit is: Group of answer choices $16.70 $21.00 $18.40 $20.50