Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.20 Direct labor $ 3.10 Variable manufacturing overhead $ 1.35 Fixed manufacturing overhead $ 14,000 Sales commissions $ 1.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 4,500 If the selling price is $21.90 per unit, the contribution margin per unit sold is closest to: Multiple Choice A. $9.35 B. $12.60

Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.20 Direct labor $ 3.10 Variable manufacturing overhead $ 1.35 Fixed manufacturing overhead $ 14,000 Sales commissions $ 1.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 4,500 If the selling price is $21.90 per unit, the contribution margin per unit sold is closest to: Multiple Choice A. $9.35 B. $12.60

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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	Cost per Unit	Cost per Period
Direct materials	$ 6.20
Direct labor	$ 3.10
Variable manufacturing overhead	$ 1.35
Fixed manufacturing overhead		$ 14,000
Sales commissions	$ 1.50
Variable administrative expense	$ 0.40
Fixed selling and administrative expense		$ 4,500

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