# ACCOUNTING

Gardner Manufacturing Company produces a product that sells for \$120. A selling commission of 10% of the selling price is paid on each unit sold. Variable manufacturing costs are \$60 per unit. Fixed manufacturing costs are \$20 per unit based on the current level of activity, and fixed selling and administrative costs are \$16 per unit. The contribution margin per unit is:

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1. Contribution margin=unit selling price-unit variable costs.

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