Question

The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year. Selling price per unit Variable manufacturing costs per unit Variable selling and administrative expenses per unit Fixed manufacturing overhead (in total) Fixed selling and administrative expenses in total) Units produced during the year Units sold during year $8.10 $1.86 $4.95 $77,000 $85,000 520,000 170,000 Using variable costing, what is the contribution margin for last year? O A. $1,377,000 O B. $316,200 O c. $2,534,700 OD. $219,300

Answer 1

1. Contribution margin = Sales revenue - Variable costs = (8.10*170,000) - [(1.86+4.95)*170,000] = 1,377,000 - 1,157,000 = 219,300 Option D

2. Variable cost per unit = 120,000/50,000 = 2.40 Fixed cost = Total cost - Total Variable cost = 350,000 - 120,000 = 230,000 Total Cost for 105,000 units = (105,000*2.40) + 230,000 = 482,000 Option C

As HOMEWORKLIB RULES, I'm supposed to solve your first question. But I solved two for you. . Please post them separately from next time