Alexis Co reported the following information for May Part A

Alexis Co. reported the following information for May Part A 5,000 units Units sold Selling price per unit variable manufacturing cost per unit Sales commission per unit -Part A $ 800 520 80 What is the manufacturing margin for Part A? Multiple Choice $1,000.000 $1,400,000 $3,600.000 $2,600,000

Solution

Solution:

Manufacturing margin = Sales - COGS = 5,000×$800 - 5,000×$520

= $4,000,000 - 2,600,000 = $1,400,000

Thus, answer is option B. $1,400,000