Steve Company manufactures a product that is expected to incur $20 per unit in variable production costs and sell
for $ 32 per unit. The sales commission is 10% of the sales price. Due to intense competition, Steve actually sold 400 units for $ 30 per unit. The actual variable production costs incurred were $ 22.50 per unit. Calculate the total contribution margin and contribution margin ratio at the expected price/costs and the actual price/costs. How might management use this information?