edregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.65 Direct labor $ 3.70 Variable manufacturing overhead $ 1.45 Fixed manufacturing overhead $ 25,900 Sales commissions $ 0.65 Variable administrative expense $ 0.70 Fixed selling and administrative expense $ 4,800 If the selling price is $20.70 per unit, the contribution margin per unit sold is closest to: Multiple Choice $4.25 $6.30 $7.55 $10.35
edregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.65 Direct labor $ 3.70 Variable manufacturing overhead $ 1.45 Fixed manufacturing overhead $ 25,900 Sales commissions $ 0.65 Variable administrative expense $ 0.70 Fixed selling and administrative expense $ 4,800 If the selling price is $20.70 per unit, the contribution margin per unit sold is closest to: Multiple Choice $4.25 $6.30 $7.55 $10.35
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Pedregon Corporation has provided the following information:
| Cost per Unit | Cost per Period | |
|---|---|---|
| Direct materials | $ 6.65 | |
| Direct labor | $ 3.70 | |
| Variable manufacturing overhead | $ 1.45 | |
| Fixed manufacturing overhead | $ 25,900 | |
| Sales commissions | $ 0.65 | |
| Variable administrative expense | $ 0.70 | |
| Fixed selling and administrative expense | $ 4,800 |
If the selling price is $20.70 per unit, the contribution margin per unit sold is closest to:
Multiple Choice
-
$4.25
-
$6.30
-
$7.55
-
$10.35
Expert Solution
Step 1: Given:
Here,
| Selling Price per Unit | $20.70 | |
|---|---|---|
| Direct materials | $ 6.65 | |
| Direct labor | $ 3.70 | |
| Variable manufacturing overhead | $ 1.45 | |
| Fixed manufacturing overhead | $ 25,900 | |
| Sales commissions | $ 0.65 | |
| Variable administrative expense | $ 0.70 | |
| Fixed selling and administrative expense | $ 4,800 |
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