What is the current contribution margin per unit for component P06 based on its selling price of $220 and its annual production of 4,000 units?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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$169 per unit
$173 per unit
$51 per unit
$137 per unit
Transcribed Image Text:O $169 per unit $173 per unit $51 per unit $137 per unit
Younes Incorporated manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as
P06. Data concerning this product are given below:
Per Unit
$ 220
$ 38
Selling price
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling expense
Fixed selling and administrative expense
The above per unit data are based on annual production of 4,000 units of the component. Assume that direct labor is a variable cost.
What is the current contribution margin per unit for component P06 based on its selling price of $220 and its annual production of 4,000 units?
$ 1
$ 8
$ 16
$ 4
$16
Transcribed Image Text:Younes Incorporated manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as P06. Data concerning this product are given below: Per Unit $ 220 $ 38 Selling price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling and administrative expense The above per unit data are based on annual production of 4,000 units of the component. Assume that direct labor is a variable cost. What is the current contribution margin per unit for component P06 based on its selling price of $220 and its annual production of 4,000 units? $ 1 $ 8 $ 16 $ 4 $16
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