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.The company produced 9,085 units and sold 4,184 units for $874 each. Variable manufacturing costs were 237 per unit. Fixed manufacturing costs were $8,352. Variable selling and administrative costs were $49 per unit sold and fixed selling and administrative costs were $1,775. There was no beginning inventory. What is the contribution margin? As always, no $ and commas.

.The company produced 9,085 units and sold 4,184 units for $874 each. Variable manufacturing costs were 237 per unit. Fixed manufacturing costs were $8,352. Variable selling and administrative costs were $49 per unit sold and fixed selling and administrative costs were $1,775. There was no beginning inventory. What is the contribution margin? As always, no $ and commas.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2.The company produced 9,085 units and sold 4,184 units for $874 each. Variable manufacturing costs were 237 per unit. Fixed manufacturing costs were $8,352. Variable selling and administrative costs were $49 per unit sold and fixed selling and administrative costs were $1,775. There was no beginning inventory. What is the contribution margin? As always, no $ and commas.

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Step 1

Solution:-

Calculation of the contribution margin as  follows under:-

Introduction:-

The following information given:

  • sold 4,184 units for $874 each
  • Variable manufacturing costs were 237 per unit
  • Variable selling and administrative costs were $49 per unit
  • fixed selling and administrative costs were $1,775
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