The following costs have been estimated based on sales of 30,000 units:   Total Annual Costs   Percent That Is Variable Direct materials $ 300,000   100 % Direct labor   250,000   100 % Manufacturing overhead   250,000   50 % Selling and administrative   150,000   25 %What selling price (rounded to two decimal places) will yield a contribution margin of 40%?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. The following costs have been estimated based on sales of 30,000 units:

      Total Annual Costs   Percent That Is Variable
    Direct materials $ 300,000   100 %
    Direct labor   250,000   100 %
    Manufacturing overhead   250,000   50 %
    Selling and administrative   150,000   25 %
    What selling price (rounded to two decimal places) will yield a contribution margin of 40%?
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