Ask Question
7 May, 13:08

The company produced 7,771 units and sold 2,111 units for $628 each. Variable manufacturing costs were 352 per unit. Fixed manufacturing costs were $4,969. Variable selling and administrative costs were $24 per unit sold and fixed selling and administrative costs were $2,811. There was no beginning inventory. What is the contribution margin? As always, no $ and commas.

+3
Answers (1)
  1. 7 May, 13:32
    0
    The contribution margin is 531 972

    Explanation:

    Computation of contribution margin

    The contribution margin is revenues - Variable costs

    Sales Revenue (2 111 * 628) 1 325 708

    Variable manufacturing costs (2 111 * 352) 743 072

    Variable Selling and Administrative costs (2 111 * 24) 50 664

    Contribution Margin 531 972

    All costs of a fixed nature in manufacturing or selling and administrative expenses are not considered in determining the contribution margin
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The company produced 7,771 units and sold 2,111 units for $628 each. Variable manufacturing costs were 352 per unit. Fixed manufacturing ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers