### Pedregon Corporation Cost AnalysisPedregon Corporation has provided the following cost information:| **Cost Item** | **Cost per Unit** | **Cost per Period** ||----------------------------------------|-------------------|---------------------|| Direct materials | $6.70 | || Direct labor | $3.80 | || Variable manufacturing overhead | $1.50 | || Fixed manufacturing overhead | | $15,200 || Sales commissions | $0.70 | || Variable administrative expense | $0.75 | || Fixed selling and administrative expense| | $6,800 |**Note:** If the selling price is $20.80 per unit, the contribution margin per unit sold is closest to one of the options in the multiple-choice question below.### Multiple Choice Question**Determine the contribution margin per unit:**- $3.55- $5.00- $7.35- $10.30**Instructions:** Select the option that represents the correct contribution margin per unit. Contribution margin per unit is calculated as the selling price per unit minus the variable costs per unit. Use the provided cost information to determine the appropriate figure.

Contribution margin is the sales revenue of the business over and above all variable costs of the…

Answered: If the selling price is $20.80 per…

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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A product has a sales price of $140 and a per-unit contribution margin of $14. What is the contribution margin ratio? Contribution margin ratio
Ay 3. Suppose the cost and the demand for a daily product is: C=10 d(p) = D(1 - w(p)) = 200-10p What is the total contribution (profit) based on the optimal price?
Find out BEP in units and value with the following data:Fixed cost - $30000Variable cost - $20 per unitSelling Price - $50 per unit.
Which of the following would produce no change in the contribution margin per unit? Select one: a. A 14% increase in variable cost. b.A 7% increase in selling price. CA 15% decrease in selling price. d. None of the given of answers. A 23% increase in the number of units sold.
On the CVP graph, the next unit sold will increase sales by an amount equal to the Select one: O a. Contribution margin ratio O b Selling price per unit minus the variable.costs per unit Oc Variable costs per unit Od. Difference between contribution margin and fixed costs O e. Selling price per unit
Please explain this statement thoroughly. "To estimate what the profit will be at various levels of activity, multiply the number of units to be sold above or below the break-even point by the unit contribution margin."
The break-even point can be calculated with the following formula: Total fixed expenses / (Variable cost per unit Selling price per unit)TRUEFALSE
The contribution margin equals sales minus all O period O variable O fixed O product expenses.
1. Assume a company sells three different products. The contribution margin ratio of the first product is 20 percent. The contribution margin ratio of the second product is 50 percent. The contribution margin ratio of the third product is 80 percent. What is the range of the company's overall contribution margin ratio?
Miniconjou Co. provides the following data for the most recently completed calendar year. Answer the following questions for the company based on the data below. DO NOT enter dollar signs or camas. Estimated total machine-hours 5,280 Estimated total fixed manufacturing overhead $33,000 Estimated variable manufacturing overhead per machine-hour $3.50 Actual total manufacturing overhead $47,800 Direct Materials used (all jobs) $17,160 Direct Labor cost (all jobs) $27,720 Actual machine hours (MHs) used (all jobs) 5,000 How much MOH will be applied to all Job? Round to whole dollars.
What are the answers for the following? Construct a cost-volume-profit chart on your own paper. What is the break-even sales? What is the expected margin of safety in dollars and as a percentage of sales? Determine the operating leverage. Round to one decimal place.

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If the selling price is $20.80 per unit, the contribution margin per unit sold is closest to: