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A division sold 210000 calculators during 2017: Sales $2100000 Variable costs:        Materials $399000        Order...

A division sold 210000 calculators during 2017:

Sales $2100000
Variable costs:
       Materials $399000
       Order processing 157500
       Billing labor 115500
       Selling expenses 63000
       Total variable costs 735000
Fixed costs 1000000


How much is the unit contribution margin?

$1
$3.5
$8.3
$6.5
Business   Accounting   
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Homework Answers

Answer #1

Sollution

Option D Is correct

unit contribution margin=$6.5

Working

Contribution margin Per Unit (210000 Calcultors )
Particulars Total Per Unit
Sales(A) $2,100,000.00 $10.00
Variable Cost:(B)
Material $399,000.00 $1.90
Order Processing $157,500.00 $0.75
Billing labor $115,500.00 $0.55
Selling expenses $63,000.00 $0.30
Total Variable cost $735,000.00 $3.50
ContributionMargin (C=A-B) $1,365,000.00 $6.50
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