Question

Question 4 A division sold 190000 calculators during 2020: $1900000 $361000 142500 Sales Variable costs: Materials Order processing Billing labor Selling expenses Total variable costs Fixed costs 104500 57000 665000 1000000 How much is the unit contribution margin? o $1.00 O $3.50 $8.76 $6.50

Answer 1

In the given case the details of the sales , variable costs and fixed costs are given based on it the contribution margin and contribution margin per unit will be as follows:

Contribution margin in units = Sales price per unit - Variable cost per unit,

Cotribution margin in units = $ 10 - $ 3.50 = $ 6.50 per unit

	Amount	Per unit
Sales	1900000	10.00
Less: variable cost
Material	361000	1.90
Order Processing	142500	0.75
Billing Labor	104500	0.55
Selling Expenses	57000	0.30
Total Variable Expenses	665000	3.50
Contribution Margin	1235000	6.50

Thus the correct option is ------------D i.e $ 6.50