Reliance Corporation sold 4,900 units of its product at a price of $24 per unit. Total variable cost per unit is $13.00, consisting of $12.25 in variable production cost and 0.75 in variable selling and administrative cost. Compute contribution margin for the company. a. $53,900 b. $63,700 c. $117,600 d. $60,025 e. $67,375

Reliance Corporation sold 4,900 units of its product at a price of $24 per unit. Total variable cost per unit is $13.00, consisting of $12.25 in variable production cost and 0.75 in variable selling and administrative cost. Compute contribution margin for the company. a. $53,900 b. $63,700 c. $117,600 d. $60,025 e. $67,375

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
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