A company sells it\'s product for 50 cents per 16 ounces. Net sales $1,800,000 d

Question

A company sells it's product for 50 cents per 16 ounces.
Net sales $1,800,000
direct materials 430,000
direct labor 352,000
manufacturing overhead- variable 316,000
manufacturing overhead- fixed 283,000
selling expenses- variable 70,000
selling expenses- fixed 65,000
administrative expenses- variable 20,000
administrative expenses- fixed 60,000

Prepare a CVP Income Statement

I don't know how to figure out the cost per unit. My professor gave me this to go on:

With the calculations for the units and price in 6-2, you need to determine the % of sales per unnit. Next you will need to determine the cost to produce the units base on the %. This will help calculate the units and cost.
$.50X = $.? + $408,000
$.?X = $408,000
X = ? units

(2) ?X $.50 = $??

I don't get this. I am so lost. So any help would be greatly appreciated.

Explanation / Answer

 

_____________________________________________________________
11,188,000 / 3,600,000 = 0.33
2408,000 / 3,600,000 = 0.11

 

 

Units  1,800,000 / 0.50 = 3,600,000                 Total      Per Unit Net Sales     1,800,000 0.50 Variable costs         Direct Materials   430,000     Direct Labor   352,000     Manufacturing Overhead 316,000     Selling Expense   70,000     Administrative Expenses 20,000 1,188,000 0.331 Contribution Margin   612,000 0.17 Fixed Costs         Manufacturing Overhead 283,000     Selling Expense   65,000     Administrative Expenses 60,000 408,000 0.112             Net Income     204,000 0.06

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