Question

In September, Coronado Company had the following financial statement amounts related to producing 520 units: Direct...

In September, Coronado Company had the following financial statement amounts related to producing 520 units:

Direct materials

$26800

Depreciation expense

11000

Sales revenue

95060

Direct labour

22500

Rent expense

24700


How much is the contribution margin per unit?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Contribution margin = Sales revenue - Variable cost

Variable cost includes only those cost which are variable in nature. Rent expense and Depreciation are fixed in nature and therefore will not be included in the variable cost.

Variable cost will include direct material and direct labour

Contribution margin

= 95,060 - 26,800 - 22,500

= $45,760

Number of units sold = 520 units

Contribution margin per unit

= 45,760/520

= $88 per unit

If you find the answer helpful please upvote.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In September, Smith Company had the following financial statement amounts related to producing 500 units: Direct...
In September, Smith Company had the following financial statement amounts related to producing 500 units: Direct materials $27,000 Depreciation expense 11,000 Sales revenue 95,000 Direct labour 23,000 Rent expense 25,000 How much is the break-even point, rounded to the nearest whole number?
n September, Smith Company had the following financial statement amounts related to producing 500 units: Direct...
n September, Smith Company had the following financial statement amounts related to producing 500 units: Direct materials $27,000 Depreciation expense 11,000 Sales revenue 95,000 Direct labour 23,000 Rent expense 25,000 How much is the break-even point, rounded to the nearest whole number?
Jasmine Company had the following amounts: Direct materials $10 per unit Direct Labor $27 per unit...
Jasmine Company had the following amounts: Direct materials $10 per unit Direct Labor $27 per unit Variable overhead $2.50 per unit Fixed overhead $75,500 Variable selling expenses $4 per unit Fixed selling and administrative expenses $125,000 65,000 units produced 57,000 units sold Sales price per unit is $52 each Calculate the VARIABLE product cost per unit and prepare a Contribution Margin Income Statement under Variable Costing in order to fill in the rest of the information. Variable product cost per...
1. Coronado reported the following information for the current year: Sales (57000 units) $1140000, direct materials...
1. Coronado reported the following information for the current year: Sales (57000 units) $1140000, direct materials and direct labor $570000, other variable costs $57000, and fixed costs $360000. What is Coronado’s break-even point in units? a. 52615. b. 40000. c. 32727. d. 36000. 2. Sheridan Company sells a product with a contribution margin of $10 per unit, fixed costs of $223200, and sales for the current year of $320000. How much is Sheridan’s break-even point? a. $96800 b. 9680 units...
testing inc. had the following amounts for the year: direct materials $8 per unit direct labor...
testing inc. had the following amounts for the year: direct materials $8 per unit direct labor $15 per unit variable overhead $5 per unit fixed overhead $90,000 variable selling expenses $3 per unit fixed selling and admin expenses $150,000 75,000 units produxed 65,000 units sold af $45 each calculate the VARIABLE product cost per unit and prepare a contribution margin income statement under variable costing in order to complete the reat of the information a) variable product cost per unit...
In March, Olimpia SA had the following costs related to the production of 10,000 units: Direct...
In March, Olimpia SA had the following costs related to the production of 10,000 units: Direct Materials $ 60,000 Variable direct labor $ 20,000 Plant rent $ 5,000 Machine depreciation (in a straight line) $ 4,000 Calculate the variable cost per unit:
Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality...
Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct...
10. Coronado Industries incurs the following costs to produce 9100 units of a subcomponent: Direct materials...
10. Coronado Industries incurs the following costs to produce 9100 units of a subcomponent: Direct materials $7644 Direct labor 10283 Variable overhead 11466 Fixed overhead 16200 An outside supplier has offered to sell Coronado the subcomponent for $2.85 a unit. If Coronado could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by $458. $6458. $(5639). $(1724). 11. Bramble Corp. incurs the following costs to produce 11900 units of a subcomponent: Direct materials $9996 Direct...
Pharoah Company has the following information available for September 2020. Unit selling price of video game...
Pharoah Company has the following information available for September 2020. Unit selling price of video game consoles $450 Unit variable costs $315 Total fixed costs $47,250 Units sold 600 Compute the unit contribution margin. Prepare a CVP income statement that shows both total and per unit amounts. PHAROAH COMPANY CVP Income Statement For the Month Ended September 30, 2020 Compute Pharoah’ break-even point in units. Prepare a CVP income statement for the break-even point that shows both total and per...
Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality...
Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT