Drake Footwear Company plans to sell 15,000 pairs of shoes at $60 each in the coming year. Product costs include: Cost Component Amount per Unit Direct materials per unit $18.00 Direct labor per unit $5.50 $3.25 Variable overhead per unit Total fixed factory overhead $95,000 Variable selling expense is a promotional rebate, which averages $2.75 per pair, and fixed selling and administrative expenses total $65,000. Required: Calculate the following values: a. Variable product cost per unit. b. Total variable cost per unit. c. Contribution margin per unit.

Drake Footwear Company plans to sell 15,000 pairs of shoes at $60 each in the coming year. Product costs include: Cost Component Amount per Unit Direct materials per unit $18.00 Direct labor per unit $5.50 $3.25 Variable overhead per unit Total fixed factory overhead $95,000 Variable selling expense is a promotional rebate, which averages $2.75 per pair, and fixed selling and administrative expenses total $65,000. Required: Calculate the following values: a. Variable product cost per unit. b. Total variable cost per unit. c. Contribution margin per unit.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

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