Tirri Corporation has provided the following information: Direct materials Cost per Unit Cost per Period $6.65 Direct labor $3.40 Variable manufacturing overhead Fixed manufacturing overhead $1.15 $22,700 Sales commissions $1.10 Variable administrative expense $0.45 Fixed selling and administrative expense $ 7,100 If the selling price is $26.40 per unit, the contribution margin per unit sold is closest to:

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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How am I supposed to solve this? How do I figure out COGS if I don’t know how many units are sold?
Tirri Corporation has provided the following information:
Cost per Unit
Cost per Period
Direct materials
$6.65
Direct labor
$3.40
Variable manufacturing overhead
Fixed manufacturing overhead
$1.15
$22,700
Sales commissions
$1.10
Variable administrative expense
$0.45
Fixed selling and administrative expense
$ 7,100
If the selling price is $26.40 per unit, the contribution margin per unit sold is closest to:
Transcribed Image Text:Tirri Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $6.65 Direct labor $3.40 Variable manufacturing overhead Fixed manufacturing overhead $1.15 $22,700 Sales commissions $1.10 Variable administrative expense $0.45 Fixed selling and administrative expense $ 7,100 If the selling price is $26.40 per unit, the contribution margin per unit sold is closest to:
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