Question

The following data pertains to Kandy Company Monthly fixed cost (FC) $200,000 Selling price per unit...

The following data pertains to Kandy Company
Monthly fixed cost (FC) $200,000
Selling price per unit (SP/u) $12
Variable cost per unit (VC/u) $8
Income tax rate (t) 20%

Find contribution margin per unit

1.

$4

2.

$6

3.

$8

4.

$10

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Contribution Margin per unit = Selling price - Variable cost per unit

Contribution Margin per unit = $12 - $8

Contribution Margin per unit = $4

so, The Contribution Margin per unit = $4

Option '1' is correct

Add a comment
Know the answer?
Add Answer to:
The following data pertains to Kandy Company Monthly fixed cost (FC) $200,000 Selling price per unit...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The following data pertains to AAA division of JJJ Company. ? ? ? Selling price per...

    The following data pertains to AAA division of JJJ Company. ? ? ? Selling price per unit $15 Variable cost per unit $7 Total fixed costs $100,000 Total investment of AAA division $200,000 5) Given: ? ??? a) the minimum desired return on investment equals to 20% ??? b) the estimated residual income 15,000 ? ? What are sales, in units? ? 1. between 19,000 and 19,500 2. between 12,000 and 12,500 3. between 10,000 and 10,500 4. between 1,000...

  • Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost...

    Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs...

  • The following information pertains to SeaSpan Inc for a period: Selling price per unit Standard fixed...

    The following information pertains to SeaSpan Inc for a period: Selling price per unit Standard fixed manufacturing costs per unit Variable selling and administrative cost $41 $20 $4 per unit $16,000 Fixed selling and administrative costs Beginning inventories: Units Standard fixed manufacturing cost Standard variable manufacturing cost Units produced Units sold ? $40,000 $20,000 10,000 units 9,600 units a) Assume the unit standard costs data for the beginning and ending inventories remained constant during the period. What was the total...

  • The following information pertains to SeaSpan Inc for a period: Selling price per unit Standard fixed...

    The following information pertains to SeaSpan Inc for a period: Selling price per unit Standard fixed manufacturing costs per unit Variable selling and administrative cost $41 $20 $4 per unit $16,000 Fixed selling and administrative costs Beginning inventories: Units Standard fixed manufacturing cost Standard variable manufacturing cost Units produced Units sold ? $40,000 $20,000 10,000 units 9,600 units a) Assume the unit standard costs data for the beginning and ending inventories remained constant during the period. What was the total...

  • Assume a selling price of $20 per unit, variable cost per unit of $12, and total...

    Assume a selling price of $20 per unit, variable cost per unit of $12, and total fixed cost of $500. If 200 units are sold, calculate the contribution margin and the operating income.

  • 2. Kylie's Cookies is considering the purchase of a larger oven that will cost $2,200 and...

    2. Kylie's Cookies is considering the purchase of a larger oven that will cost $2,200 and will increase her fixed costs by $59. What would happen if she purchased the new oven to realize the variable cost savings of $0.10 per cookie, and what would happen if she raised her price by just $0.20? She feels confident that such a small price increase will decrease the sales by only 25 units and may help her offset the increase in fixed...

  • Problem 11-4 NYM Manufacturing Company makes a product. Selling Price per unit Variable manufacturing cost per unit Variable selling expense per unit (sales commissions) Annual Fixed Manufacturing Co...

    Problem 11-4 NYM Manufacturing Company makes a product. Selling Price per unit Variable manufacturing cost per unit Variable selling expense per unit (sales commissions) Annual Fixed Manufacturing Costs Annual Fixed Selling and Admin Costs 150 80 25 40,000 s 60,000 REQUIRED Determine the break-even point in units and dollars using the following approaches. 1 Equation method 2 Contribution margin per unit. 3 Contribution margin ratio. 4 Confirm your results by preparing a contribution margin income statement for the breakeven sales...

  • Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and...

    Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and contribution margin per unit for the two company's follow: Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $880 $440 $440 Zoro 620 480 The sales mix for products...

  • Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...

    Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Company's contribution format income statement for the most recent month is shown below: Sales (31,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $186,000 93,000 93,000 44,000 $ 49,000 Per Unit $6.00 3.00 $3.00 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised...

  • Steven Company has fixed costs of $185,484. The unit selling price, variable cost per unit, and...

    Steven Company has fixed costs of $185,484. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $768 $288 $480 Y 323 173 150 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT