Refer to the original data in the problem.What is the current contribution margin per unit for component P06 based on its selling price of $220 and its annual production of 4,000 units?

A) $51 per unit
B) $137 per unit
C) $169 per unit
D) $173 per unit

Contribution Margin

The amount remaining from sales revenue after variable costs have been subtracted, which contributes to covering fixed costs and generating profit.

Selling Price

is the amount a customer pays to purchase a product or service.

Annual Production

The total quantity of goods or services produced by a company or facility within a one-year period.