Question

Docs y Drive Google Drive a m 12 Review Protection SRM 3222 Global Soort MH Connect Help Save & Exit Subm Rocky Mountain Bottling Company produces a soft drink that is sold for a dollar. At production and sales of 1,200,000 units, the company pays $600,000 in production costs, half of which are fixed costs. At that volume, general, selling, and administrative costs amount to $220,000 of which $40,000 are foxed costs. What is the amount of contribution margin per unit? Multiple Choice None of these conec

Answer 1

Total Variable costs = (600,000*1/2) + (220,000-40,000) = 480,000 Total Contribution margin = total sales - total variable costs = (1,200,000*1) - 480,000 = 720,000 Contribution margin per unit = 720,000/1,200,000 = 0.60 Option A