D
Unit sales per month
1,050
E
1,300
F
900
Selling price per unit
Variable costs per unit
$6.00
$11.25
$ 7.50
3.00
9.00
7.80
Unit contribution margin
$3.00
$2.25
$(0.30)
Assume that product F is discontinued and the space is used to produce E. Product E's
production is increased to 2,000 units per month, however, the selling price of all units of E
is reduced to $10.25. What will be the change in total contribution margin as a result of these
changes?