Question

A cement manufacturer has supplied the following data:

Tons of cement produced and sold		245,000
Sales revenue	$	1,053,500
Variable manufacturing expense	$	427,000
Fixed manufacturing expense	$	286,000
Variable selling and administrative expense	$	63,000
Fixed selling and administrative expense	$	226,000
Net operating income	$	51,500

What is the company's unit contribution margin? (Round your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-08-04

Multiple Choice

• $0.32 per unit

• $2.30 per unit

• $4.30 per unit

• $2.00 per unit

Answer 1

Correct Option : B i.e. $2.30 per unit
tons of cement produced and sold	245,000
Sales revenue	1,053,500
Less: Variable manufacturing expense	427,000
Less: Variable selling and administrative expense	63,000
Contribution Margin	563,500
Contribution margin per unit	2.30	(563500/245000)