XDR Industries produces a single product. The company's absorption costing income statement for April is as follows: Sales (3,000 units) $75,000 Cost of goods sold 36,000 Gross margin 39,000 Selling and administrative expenses: Fixed $9,000 Variable 12,000 Total Selling & Admin Exp 21,000 Net operating income $18,000 During April, the company's variable production costs were $9 per unit, and its fixed manufacturing overhead totaled $6,000. What is the contribution margin per unit during April?

XDR Industries produces a single product. The company's absorption costing income statement for April is as follows: Sales (3,000 units) $75,000 Cost of goods sold 36,000 Gross margin 39,000 Selling and administrative expenses: Fixed $9,000 Variable 12,000 Total Selling & Admin Exp 21,000 Net operating income $18,000 During April, the company's variable production costs were $9 per unit, and its fixed manufacturing overhead totaled $6,000. What is the contribution margin per unit during April?

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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