Auburn Products operates within a relevant range of 4,000 to 10,000 units. When the company produces and sells 6,000 units, the following average costs per unit are reported: • Direct materials: $4.80 • Direct lab or: $3.20 • Variable manufacturing overhead: $1.60 Fixed manufacturing overhead: $3.50 Sales commissions: $0.70 Variable administrative expenses: $0.40 . Fixed administrative expenses: $0.80 The selling price per unit is $21.00. What is the contribution margin per unit sold?

Auburn Products operates within a relevant range of 4,000 to 10,000 units. When the company produces and sells 6,000 units, the following average costs per unit are reported: • Direct materials: $4.80 • Direct lab or: $3.20 • Variable manufacturing overhead: $1.60 Fixed manufacturing overhead: $3.50 Sales commissions: $0.70 Variable administrative expenses: $0.40 . Fixed administrative expenses: $0.80 The selling price per unit is $21.00. What is the contribution margin per unit sold?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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