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