99 Mon Jan 29 1240 AM yusra abdelmeguid aE blackboardvcuedu

99% \' Mon Jan 29 12:40 AM yusra abdelmeguid aE blackboard.vcu.edu ahool VCU.edu-Cen...tion Service NOVA Login MindTap Th...ol-Cengage Watch TV Onl INITY Stream ACCT Exam 2 Flashcards... Test 1 Material- ACCT-204X Take Test: 88 quiz po du Central Instructions Multiple Attempts This test allows multiple attempts. Force Completion This test can be saved and resumed later Question Completion Status: Close Window Moving to another question wil save this response. Question 2 of 15 Question 2 1 points Save Answer The following information relates to Your Corporation which prodaced and sold 50,000 unis last month. $850,000 Sales Manufacturing costs: Fixed. Variable $210,000 $140,000 Selling and administrative ex $300,000 $45,000 Fixed Variable There were no beginning or ending inventories. Production and sales next month are expected to be 40,000 units. The company\'s per unit contribution margin next month should be: ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DISCRIPTIONS. delete 0

Solution

Based on last month data,

Selling price per unit

= Total Sales / Quantity sold

= $850,000 / 50,000

= $ 17 per unit

Total Variable costs last month = Variable manufacturing costs + Variable selling and administrative expenses

= $140,000 + $45,000

= $ 185,000

So, Variable cost per unit

= Total variable costs / Quantity produced or sold

= $185,000 / 50,000

= $ 3.7 per unit

So, Contribution margin per unit

= Selling price per unit – Variable costs per unit

= $17 - $3.7

= $ 13.3 per unit