Testbank Question 169 A manufacturer of potting soil has the following financial

Question

Testbank Question 169

A manufacturer of potting soil has the following financial data:

$10,100

hat is the company’s unit contribution margin? (Round answer to 2 decimal places, e.g. 1.64.)

Pounds produced and sold 24,800 Sales $186,200 Less: Variable manufacturing costs 121,800          Fixed manufacturing costs 11,000          Variable selling and administrative costs 29,000          Fixed selling and administrative costs 14,300 Net operating income

$10,100

hat is the company’s unit contribution margin? (Round answer to 2 decimal places, e.g. 1.64.)

Unit contribution margin $

Explanation / Answer

Contribution Marigin = Sales - Total Variable cost = 186200 - 150800 = $35,400

Unit Contribution Margin = Contribution Margin/ Total Units sold = 35400/24800 = 1.427

Sales= $186,200

Total Variable Cost = Variable manufacturing costs +    Variable selling and administrative costs

= 121,800 + 29,000 = 1,50,800

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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