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* Revenue per unit = $25 * Contribution margin per unit = Revenue per unit - (Direct labor per unit + Direct materials per unit + Variable manufacturing overhead per unit + Variable selling and administrative expense per unit) = $25 - ($6 + $2 + $3 + $2) = $25 - $13 = $12 * To get a contribution margin of $75,000, the company needs to sell $75,000 / $12 = 6,250 units. The correct answer is 6,250 units.

Author

Abd-Ullah Atef

Language

EN