Elfalan corporation produces a single product. the cost of producing and selling a single unit of this product at the company's normal activity level of 80,000 units per month is as follows: per unit direct materials $ 22.50 direct labor $ 7.50 variable manufacturing overhead $ 1.70 fixed manufacturing overhead $ 19.00 variable selling & administrative expense $ 2.70 fixed selling & administrative expense $ 8.60 the normal selling price of the product is $67.80 per unit. an order has been received from an overseas customer for 3,000 units to be delivered this month at a special discounted price. this order would not change the total amount of the company's fixed costs. the variable selling and administrative expense would be $1.90 less per unit on this order than on normal sales. direct labor is a variable cost in this company. what is the contribution margin per unit on normal sales? (round your intermediate calculations to 2 decimal places.) garrison 16e rechecks 2017-09-13

a. $7.20 per unit
b. $33.40 per unit
c. $5.80 per unit
d. $7.70 per unit

b. $33.40 per unit

Explanation:

The computation of the contribution margin per unit on normal sales is shown below:

= Selling price - Direct materials - Direct labor - Variable manufacturing overhead - Variable selling & administrative expense

= $67.80 - $22.50 - $7.50 - $1.70 - $2.70

= $33.40 per unit

As we know that

Contribution margin per unit = Selling price per unit - Variable expense per unit

All other information which is given is not relevant. Hence, ignored it

im almost done gimme more time to get the answer

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.