Question

LUUU D) $56,000 4. Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 5,300 Selling price per unit $590 Unit cost of goods sold $403 Variable selling expense per unit $58 Total fixed selling expense $124,400 Variable administrative expense per unit $22 Total fixed administrative expense $206,300 Cost of goods sold is a variable cost in this company. Required: What is the contribution margin for Fanelli Corporation. Show work OSW DELL % * 7 SOOOOO TOP O

Answer 1

4. Total Variable Cost Per Unit = Units cost of goods sold + variable selling expense per unit + variable administrative expense per unit

= 403+58+22

= $ 483

Contribution Margin = Selling Price Per Unit - Variable Expense Per Unit

= $ 590 - 483

= $ 107 per unit

Total Contribution Margin =Units * Contribution Margin per unit

= 5300 Units * $ 107 Per Unit

= $ 567,100

Answer : $ 567,100