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Answer the Following Questions Using the Information Below:
Welch Manufacturing

question 89

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Answer the following questions using the information below:
Welch Manufacturing is approached by a European customer to fulfil a one-time-only special order for a product similar to one offered to domestic customers.Welch Manufacturing has excess capacity.The following per unit data apply for sales to regular customers:
 Variable costs:  Direct materials $40 Direct labour 20 Manufacturing support 35 Marketing costs 15 Fixed costs:  Manufacturing support 45 Marketing costs 15 Total costs 170 Mark-up (50%)  85 Targeted selling price $255\begin{array} { l r } \text { Variable costs: } & \\\quad \text { Direct materials } & \$ 40 \\\quad \text { Direct labour } & 20 \\\text { Manufacturing support } & 35 \\\quad \text { Marketing costs } & 15 \\\text { Fixed costs: } & \\\quad \text { Manufacturing support } & 45 \\\quad \text { Marketing costs } & 15 \\\text { Total costs } & 170 \\\text { Mark-up (50\%) } & \underline { 85 } \\\text { Targeted selling price } & \$ 255\end{array}
-What is the contribution margin per unit?

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