The unit contribution margin iscomputed by subtracting the units cost of licensi

Question

The unit contribution margin iscomputed by subtracting the units cost of licensing & patentfees plus direct labor and materials from the selling price.

Eyepieces Binoculars Camera     Lens Sales volume (units) 30,000 22,000 8,000 Price $44.00 $75.00 $125.00 Unit Variable Costs of Licensing & Patent fees 9.00 14.00 40.00 Unit Variable Cost of Direct Labor & Materials 20.00          31.00 34.00 Unit Contribution Margin (before overhead) $15.00       $30.00    $51.00 Unit Profit Margin After Deducting Overhead ? ? ? Labor hours / unit 0.8 1.2 2.0

Explanation / Answer

Eye Pieces

Binoculars

Camera Lens

Eye Pieces

Binoculars

Camera Lens

Sales Volume 30,000.00 22,000.00 8,000.00 Labou hours / Unit 0.80 1.20 2.00 Total Labour Hours Required 24,000.00 26,400.00 16,000.00 Overhead 510,480.00 561,528.00 349,320.00 Overhead / unit 510480 / 30000 561528 / 22000 349320 /8000 Overhead / unit 17.02 25.52 43.67

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