Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and...
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Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 its average costs per unit are as follows: Average Cost per Unit $ 6.50 Direct materials Direct labor $ 4.00 $ 1.60 Variable manufacturing overhead. Fixed manufacturing overhead Fixed selling expense $ 4.00 $ 3.50 Fixed administrative expense Sales commissions $ 2.20 $ 1.20 Variable administrative expense $ 0.45 13. If the selling price is $22.50 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.) (Hint: If you need help, see the solution video for Example 1-1, part 13 in the course packet.) Contribution margin per unit Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 its average costs per unit are as follows: Average Cost per Unit $ 6.50 Direct materials Direct labor $ 4.00 $ 1.60 Variable manufacturing overhead. Fixed manufacturing overhead Fixed selling expense $ 4.00 $ 3.50 Fixed administrative expense Sales commissions $ 2.20 $ 1.20 Variable administrative expense $ 0.45 13. If the selling price is $22.50 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.) (Hint: If you need help, see the solution video for Example 1-1, part 13 in the course packet.) Contribution margin per unit
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The contribution margin per unit is arrived at by deducting the variable cost per unit from the sell... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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