Guadalupe Mountains Inc. produces and sells decorative jewelry for $120 per unit. During the month, 6,500 units were produced.Beginning balance of finished goods was 0 and ending balance of finished goods was 500. Actual fixed costs incurred were exactlyon budget for the month. The accountant went crazy and wrote down all of the costs below on a per unit basis regardless of if they arefixed or variable costs:Direct materialsDirect manufacturing laborSales commissionsUtilities at manufacturing plantRent at manufacturing plantRent for corporate headquarters$ 11 per unit$20 per unit$10 per unit$7 per unit$12 per unit$12 per unitWhat would be the total contribution margin (hint: variable costing) shown on the company's income statement?Of necessary, round final answer to the nearest whole number)

Variable Cost :— It is the cost that changes with change in units. Variable cost per unit is…

Answered: Guadalupe Mountains Inc. produces and…

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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How do I solve for the weighted-average contribution margin?
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Ocean Company makes calendars. Information on cost per unit is as follows: Direct materials $1.50 Direct labor 1.20 Variable overhead 0.90 Variable marketing expense 0.40 Fixed marketing expenses totaled $12,000 and fixed administrative expenses totaled $32,000. The price per calendar is $15. What is the break-even point in units?

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