Enugu Plastics Limited sells its product at ₦850 per unit. Variable production cost is ₦320 per unit, variable selling cost is ₦80 per unit, fixed production overhead is ₦2,250,000 per annum, and fixed selling overhead is ₦750,000 per annum. Budgeted production is 15,000 units. What is the contribution per unit?

Contribution per unit is calculated as selling price minus all variable costs: ₦850 – ₦320 – ₦80 = ₦450. Fixed costs (both production and selling) are not deducted in computing contribution under marginal costing. The ₦530 distractor incorrectly omits variable selling cost, while ₦380 and ₦300 include elements of fixed overhead incorrectly.