G camality is emity w t 1 Corinthians 33 You GT Chemical Equation & Sapling Eley
ID: 2587283 • Letter: G
Question
G camality is emity w t 1 Corinthians 33 You GT Chemical Equation & Sapling Eley Corporation produces a single product. The cost of producing and seling a single unit of this product at the company's no viy level of 40,000 units per month is as follows Direct maternals Direct labor Variable manufacturing overhead Fbxed manufacturing overhead Variable selling& administrative expense 1o Poxed selling& adminisrative expense 577 $ 8.9 The normal selling price of the product is $108.1 perunt An order has been received from an overseas customer for 1,000 units to be delivered this month at a special discounted price This order would not change The variable selling and administrative expense would be $0 4 less per unit on this order than on normal sales Drect labor is ble cost in this company the total amount of ine company's fixed What is the contribution margin per unit on normal sales? O $1800 O $18 50 s3120 $1760 ype here to search 12/5/20n BAExplanation / Answer
Contribution Margin per unit
= Selling Price per unit - Variable cost per unit
= $108 - $90.40
= $17.60
Variable Cost per unit
Direct Materials $57.7 Direct labor $17.7 Variable manufacturing overhead $5 Variable selling and administrative overhead $10 Total $90.40Related Questions
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