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:

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	$	4.85
Direct labor	$	4.70
Variable manufacturing overhead	$	1.65
Fixed manufacturing overhead	$	10.00
Fixed selling expense	$	3.45
Fixed administrative expense	$	1.50
Sales commissions	$	0.60
Variable administrative expense	$	0.55

If the selling price is $27.00 per unit, the contribution margin per unit sold is closest to:

Multiple Choice

• ($0.30)
• $5.80
• $17.45
• $14.65

  Correct

Explanation

Selling price per unit				$	27.00
Direct materials	$	4.85
Direct labor		4.70
Variable manufacturing overhead		1.65
Sales commissions		0.60
Variable administrative expense		0.55
Variable cost per unit sold					12.35
Contribution margin per unit				$	14.65