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If a product has a unit contribution margin of $12, a sales price of $20 and total fixed costs of $1,000, its variable cost per unit must be $______.

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Based on the unit contribution margin and the sales price of the product, the variable cost per unit is $8.

What is the variable cost per unit?

This can be found as the formula:

= Sales price - Contribution margin per unit

Solving gives:

= 20 - 12

= $8

In conclusion, the variable cost per unit is $8.

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