Dockwiller Inc. manufactures industrial components. One of its products, which i

Question

Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below: The above per unit data are based on annual production of 8,000 units of the component. Direct labor is a variable cost. Refer to the original data in the problem. What is the current contribution margin per unit for component D53 based on its selling price of $150 and its annual production of 8,000 units

Explanation / Answer

Selling price 150 Direct material 26 Direct Labor 3 Variable manufacturing overheads 1 Variable Selling expense 2 Total varaible expenses 32 (150-32) Contribution margin per unit 118

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