Question 12 (of 12) Save & Exit! Submit Time remaining: 0:35:43 12 hea Corporati

Question

Question 12 (of 12) Save & Exit! Submit Time remaining: 0:35:43 12 hea Corporation produces a single product. The company's absorption costing income statement for July follows: Kilihea Corporation Income Statement For the month ended July 31 $487600 326,480 161,120 Sales (10,600 units) Cost of goods sold Gross margin Selling and administrative expenses: Fixed Variable Net operating income 74,200 53,000 127,200 During March, the company's variable production costs were $21.80 per unit and its fixed manufacturing overhead totaled $109,100 The contribution margin per unit during July was. (Round your intermediate calculations and final O $19.20 O $26.80 O $3.20 O $1780

Explanation / Answer

Selling price per unit = Revenues/units = 487600/10600 = 46 $ per unit

Variable selling and administrative expenses = 53000/10600 = 5 $ per unit

Total variable expense per unit = Variable production cost + Variable selling and administrative expenses = 21.80 + 5 = 26.80 $

Contribution margin per unit = Selling price – variable cost

= 46 – 21.80 – 5 = 19.2 $ per unit

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.