A cement manufacturer has supplied the following data:

    

Tons of cement produced and sold	263,000
Sales revenue	$1,104,600
Variable manufacturing expense	$432,000
Fixed manufacturing expense	$229,000
Variable selling and administrative expense	$94,000
Fixed selling and administrative expense	$219,000
Net operating income	$130,600

     

What is the company's unit contribution margin?

rev: 03_14_2012

	$.22
	$2.00
	$4.20
→	$2.20

Unit contribution margin = Selling price per unit - Variable expenses per unit

= ($1,104,600 ÷ 263,000 units) - (($432,000 + $94,000) ÷ 263,000 units)

= ($1,104,600 ÷ 263,000 units) - ($526,000 ÷ 263,000 units)

= $4.20 per unit - $2.00 per unit = $2.20 per unit