If the selling price is $22 per unit, what is the contribution margin per unit sold? (round your answer to 2 decimal places.)

The computation follows:

1. Solve first for the variable cost per unit.

Direct materials $ 6.00

Direct labor $ 3.50

Variable manufacturing overhead $ 1.50

Sales commissions $ 1.00

Variable administrative expense $ 0.50

= $12.50 variable cost per unit

2. Then deduct the selling price to the variable cost per unit, to get the contribution margin.

22 - 12.50 = $9.50 CM per unit