Question

The following data are available for product no. CK74, manufactured and sold by Ruby Corporation: Maximum...

The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:

Maximum capacity with present facilities.................. 4500 units

Total fixed cost (per period)...............................................986337 dollars

Variable cost per unit................................................................120.29 dollars

Sales price per unit.......................................................................200.48 dollars

The contribution margin per unit for product no. CK74 is

Select one:
a. $117
b. $80.19
c. $26.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option (b) :$80. 19

Explanation :

The contribution margin per units for product No. CK74 is $80.19 .   

Contribution margin per unit formula would be =selling price per unit-variable cost per unit .

So contribution =$200.48 - $120.29

= $80.19

Contribution is the difference between sales and variable cost . In other words, contribution is the excess of selling price over variable cost. Contribution is the amount available for meeting fixed expenses and the balance is profit .

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
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,100 units and sold 27,800 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,100 units and sold 27,800 units. Production costs for the year were as follows: Direct materials $ 248,250 Direct labor $ 145,640 Variable manufacturing overhead $ 274,730 Fixed manufacturing overhead $ 595,800 Sales totaled $1,320,500 for the year, variable selling and administrative expenses totaled $164,020, and fixed selling and administrative expenses totaled $205,220. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per...
Krepps Corporation produces a single product. Last year, Krepps manufactured 34,930 units and sold 29,900 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 34,930 units and sold 29,900 units. Production costs for the year were as follows: Direct materials $ 265,468 Direct labor $ 171,157 Variable manufacturing overhead $ 300,398 Fixed manufacturing overhead $ 454,090 Sales totaled $1,330,550 for the year, variable selling and administrative expenses totaled $170,430, and fixed selling and administrative expenses totaled $261,975. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per...
Montier Corporation produces one product. Its cost includes direct materials ($10 per unit), direct labor ($8...
Montier Corporation produces one product. Its cost includes direct materials ($10 per unit), direct labor ($8 per unit), variable overhead ($5 per unit), fixed manufacturing ($225,000), and fixed selling and administrative ($30,000). In October 2017, Montier produced 25,000 units and sold 20,000 at $50 each. [Collapse question part] (a) Prepare an absorption costing income statement. MONTIER CORPORATION Income Statement For the Month Ended October 31, 2017 October 31, 2017 For the Quarter Ended October 31, 2017 (Absorption Costing) Cost of...
The following monthly data are available for the Challenger Company and its one product, SW, which...
The following monthly data are available for the Challenger Company and its one product, SW, which it manufactures:                                                                         Total               Per Unit             Sales                                                   $110,000         $275             Variable Product Costs                   $ 32,000         $ 80             Variable SGA Costs                         $ 12,000         $ 30             Fixed Overhead                                $ 12,800             Fixed SGA                                         $ 40,000         Additionally, beginning inventory was 20 units of SW and production during the month was 50 units greater than units sold. Required: Under the above scenario, what are? Total...
In the month of September, Matlock Industries sold 800 units of product. The average sales price...
In the month of September, Matlock Industries sold 800 units of product. The average sales price was $30. During the month, fixed costs were $6,300 and variable costs were 70% of sales. Determine the contribution margin in dollars, per unit, and as a ratio. Contribution margin (in dollars) $ Unit contribution margin $ Contribution margin ratio %       Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even sales (in dollars) $ Break-even sales...
2. Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per...
2. Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 170 100 % Variable expenses 68 40 % Contribution margin $ 102 60 % Fixed expenses are $346,000 per month. The company is currently selling 4100 units per month. Required: Calculate the Following: Contribution Margin Ratio: % Break Even point in Sales Dollars (rounded to the whole dollar) $ Margin of Safety in Units (nearest whole units)...
Frisch Corporation produces and sells a single product. Data concerning that product appear below: Selling price...
Frisch Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 170 Variable expense per unit $ 83.30 Fixed expense per month $ 138,720 Required: Given the present situation, compute a. The break-even sales in units. b. The break-even sales in dollars. c. The sales in units that would be required to produce a net operating income of $90,000. (1 Mark) d. The margin of safety in dollars if the company’s actual...
Brummel Corporation manufactures a single product. The selling price is $120 per unit, and variable costs...
Brummel Corporation manufactures a single product. The selling price is $120 per unit, and variable costs amount to $84 per unit. The fixed costs are $42,000 per month (round any units to the next highest full unit). Calculate: (show your calculations and round to 2 decimal places) What is the contribution margin per unit? What is the contribution margin ratio per unit? What is the monthly sales volume (in dollars) at the break-even point? How many units must be sold...
The following information is available for a company’s maintenance cost over the last seven months. Month...
The following information is available for a company’s maintenance cost over the last seven months. Month Maintenance Hours Maintenance Cost June 9 $ 4,590 July 18 7,110 August 12 5,430 September 15 6,270 October 21 7,950 November 24 8,790 December 6 3,750 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. High-Low method - Calculation of variable cost per maintenance hour 0 Total cost at the high point Variable costs at the high point:...
Reliance Corporation sold 5,000 units of its product at a price of $25 per unit. Total...
Reliance Corporation sold 5,000 units of its product at a price of $25 per unit. Total variable cost per unit is $13.50, consisting of $12.90 in variable production cost and $0.60 in variable selling and administrative cost. Compute the contribution margin for the company. Multiple Choice $57,500 $67,500 $125,000 $64,500 $70,500 Shore Company reports the following information regarding its production cost. Units produced 48,000 units Direct labor $ 43 per unit Direct materials $ 44 per unit Variable overhead $...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT