The following cost information pertained to the Violin Division of Stringing Music Co. and was based on monthly demand and sales of 100 units: Per-Unit Costs Variable production costs: Direct materials $ 210 Direct labor 240 Variable factory overhead 150 Fixed production costs: Depreciation (equipment) 110 Factory rent 138 Other 30 Total production cost $ 878 Variable selling & administrative costs $ 42 per unit Fixed selling & administrative costs $ 54 per unit Given a normal selling price per unit of $910, what is the contribution margin per unit sold for recurring (i.e., normal) sales?
The following cost information pertained to the Violin Division of Stringing Music Co. and was based on monthly demand and sales of 100 units: Per-Unit Costs Variable production costs: Direct materials $ 210 Direct labor 240 Variable factory overhead 150 Fixed production costs: Depreciation (equipment) 110 Factory rent 138 Other 30 Total production cost $ 878 Variable selling & administrative costs $ 42 per unit Fixed selling & administrative costs $ 54 per unit Given a normal selling price per unit of $910, what is the contribution margin per unit sold for recurring (i.e., normal) sales?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following cost information pertained to the Violin Division of Stringing Music Co. and was based on monthly demand and sales of 100 units:
| Per-Unit Costs | |||
| Variable production costs: | |||
| Direct materials | $ | 210 | |
| Direct labor | 240 | ||
| Variable factory |
150 | ||
| Fixed production costs: | |||
| 110 | |||
| Factory rent | 138 | ||
| Other | 30 | ||
| Total production cost | $ | 878 | |
| Variable selling & administrative costs | $ | 42 | per unit |
| Fixed selling & administrative costs | $ | 54 | per unit |
Given a normal selling price per unit of $910, what is the contribution margin per unit sold for recurring (i.e., normal) sales?
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