Answer:
The correct answer is D: $7.95
Explanation:
Giving the following information:
Direct materials $6.35
Direct labor $3.75
Variable manufacturing overhead $1.50
Sales commissions $0.50
Variable administrative expense $0.55
The selling price is $20.60 per unit.
Contribution Margin= Selling price - variable costs
CM= 20.60 - (6.35 + 3.75 + 1.5 + 0.50 + 0.55)= $7.95