The Contribution Margin per unit (CM) can be calculated

from the difference of Selling Price per unit (SP) and Total Expenses per unit

(TE).

First, let’s calculate the value of SP:

SP = Sales / Units sold

SP = $1,043,400 / 22,200 units sold

SP = $47

Second, calculate all expenses:

Direct materials per unit = $234,948 / 27,970 units

manufactured = $8.4

Direct labor per unit = $131,459 / 27,970 units

manufactured = $4.7

Variable manufacturing overhead per unit = $240,542 / 27,970

units manufactured = $8.6

Variable selling expenses per unit = $113,220 / 22,200

units sold = $5.1

TE = $26.8

Therefore the CM is:

CM = SP – TE

CM = $47 – $26.8

**CM = $20.2 per unit**