Accounting Homework Help! How to calculate CONTRIBUTION MARGIN PER UNIT?

Accounting Homework Help! How to calculate CONTRIBUTION MARGIN PER UNIT?





Here's the problem





Tanek Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Tanek is currently operating at full capacity with limited machine time.



Sales and production information relevant to each model follows.





Product

Economy Standard Deluxe

Selling price $32 $53 $106

Variable costs and expenses $13 $19 $45

Machine hours required 0.5 0.8 1.5



Calculate contribution margin per unit.







Now I attempted it and got these answers which are wrong



Economy: $38 Standard: $42.50 Deluxe: $40.67



I have no idea what to do now! Please help!!



 





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