Question

A cement manufacturer has supplied the following data: Tons of cement produced and sold 264,000 Sales revenue $ 1,082,400 Variable manufacturing expense $ 433,000 Fixed manufacturing expense $ 230,000 Variable selling and administrative expense $ 95,000 Fixed selling and administrative expense $ 220,000 Net operating income $ 104,400 What is the company's unit contribution margin?

Answer 1

Answer
Sales revenue		$     1,082,400
less:variable cost
Variable manufacturing expense	$     433,000
Variable selling and administrative expense	$       95,000
Total variable cost		-$        528,000
contribution margin		$        554,400
number of units		$        264,000
contribution per unit [554400/264000]		2.10	Per unit