Answer
a. Contribution Margin per Unit = 68 - 60 = 8
b. Operating Income = 27,880,000 - 24,600,000 - 1,640,000
Work Step by Step
a. Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit
b. Operating Income = (Selling Price per Unit * Number of Units) - Total Variable Costs - Total Fixed Costs
Operating Income = (68 * 410,000) - (60 * 410,000) - 1,640,000
