A cement manufacturer has supplied the following data: What is the company\'s un

Question

A cement manufacturer has supplied the following data:

What is the company's unit contribution margin?

The following information relates to Clyde Corporation which produced and sold 55,000 units last month.

     
   

  
      There were no beginning or ending inventories. Production and sales next month are expected to be 45,000 units. The company's unit contribution margin next month should be

Tons of cement produced and sold 248,000 Sales revenue $1,041,600 Variable manufacturing expense $417,000 Fixed manufacturing expense $276,000 Variable selling and administrative expense $79,000 Fixed selling and administrative expense $216,000 Net operating income $53,600

Explanation / Answer

Calculation of contribution per unit Sales $           1,041,600.00 Less : variable expenses Variable manufacturing expense $              417,000.00 Variable selling and administrative expense $                79,000.00 Total contribution $              545,600.00 Total units produced and sold $              248,000.00 company's unit contribution margin 545600/248000 = $                 2.20

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