Macy Corporation's relevant range of activity is 4,500 units to 10,500 units
Macy Corporation's relevant range of activity is 4,500 units to 10,500 units. When it produces and sells 7.500 units, its average costs per unit are as follows:
If the selling price is $26.00 per unit, the contribution margin per unit sold is closest to:
Homework Answers
Answer:
Total variable cost per unit = Direct material + Direct labor + Variable manufacturing overhead + Sales commission + Variable administrative overhead
= 4.90 + 3.35 + 1.35 + 1.25 + 0.75
= $11.60
Contribution margin per unit = Selling price - Total variable cost per unit = 26.00 - 11.60 = $14.40
Contribution margin per unit = $14.40
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