D’Souza Company sold 12,500 units of its product at a price of $75.00 per unit.

Question

D’Souza Company sold 12,500 units of its product at a price of $75.00 per unit. Total variable cost is $49.00 per unit, consisting of $39.50 in variable production cost and $9.50 in variable selling and administrative cost. Compute the manufacturing (production) margin for the company under variable costing.

7 10.00 points D'Souza Company sold 12,500 units of its product at a price of $75.00 per unit. Total variable cost is $49.00 per unit, consisting of $39.50 in variable production cost and S9.50 in variable selling and administrative cost. Compute the manufacturing (production) margin for the company under variable costing. D'SOUZA COMPANY Manufacturing Margin Units $ per unit Total Sales Less Variable production cost Manufacturing margin

Explanation / Answer

Units $ per Unit Total in $ Sales 12,500 75 937,500 Less: Varaible Production cost 12,500 39.50 493,750 Varaibel Selling & admin cost 12,500 9.50 118,750 Total Varaible Cost 612,500 Manufacturing Margin(937500-612500) 325,000

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