Answer:
a. $10
b. $8 per unit
c. 44.44%
Explanation:
The computation is shown below:-
First we need to find out the Variable cost and contribution margin
Sales $810,000
(45,000 × 18)
Less: Variable cost $450,000
Contribution margin $360,000
Less: Fixed cost $62,000
Operating income $298,000
a. Variable cost per unit
Variable cost per unit = Total variable cost ÷ Total number of units
= $450,000 ÷ 45,000
= $10
b. . Unit contribution margin
= (Selling price per unit - Variable cost per unit)
= $18 - $10
= $8 per unit
c. Contribution margin ratio
= (Selling price per unit - Variable cost per unit) ÷ Selling price per unit × 100
= ($18 - $10) ÷ $18
= 44.44%
