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Solution Library
Calculation Of Contribution Margin Per Unit
Question
Carr Company produces a single product. During the past year, Carr manufactured 33,930 units and sold 28,300 units. Production costs for the year were as follows:
Fixed manufacturing overhead $542,880
Variable manufacturing overhead $288,405
Direct labor $145,899
Direct materials $288,405
Sales totaled $1,287,650, variable selling expenses totaled $164,140, and fixed selling and administrative expenses totaled $206,973. There were no units in beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit would be:
a. $18.40
b. $19.50
c. $13.90
d. $24.20
Summary
The question belongs to Accounting and it discusses about calculation of contribution margin per unit.
Total Word Count 32
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