Solution :
The formula for calculating the unit contribution margin is
= ( Sales – Variable cost ) / No. of units sold
As per the information given in the question we have
Sales = $ 2800000 ; Variable cost = $ 980000 ; No. of units sold = 280000 ;
Applying the above information in the formula we have the unit contribution margin as
= ( $ 2800000 - $ 980000 ) / 280000
= $ 1820000 / 280000
= $ 6.50
Thus the unit contribution margin is = $ 6.50
The solution is option 4 = $ 6.50
Multiple Choice Question 96 A division sold 280000 calculators during 2020: Sales $2800000 Variable costs: $532000...
Multiple Choice Question 96 A division sold 370000 calculators during 2020: $3700000 Sales Variable costs: $703000 Materials Order processing Billing labor Selling expenses Total variable costs 277500 203500 111000 1295000 Fixed costs 1000000 How much is the unit contribution margin? $1.00 $3.50 O $6.20 $6.50
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
A division sold 150000 calculators during 2020:
Sales
$1500000
Variable costs:
Materials
$285000
Order processing
112500
Billing labor
82500
Selling expenses
45000
Total variable costs
525000
Fixed costs
1000000
How much is the unit contribution margin?
$1.00
$3.50
$10.17
$6.50
Question 15 4 pts A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the unit selling price? Cannot be determined $200 $300 $48 Question 16 A division sold 200,000 calculators during 2017: Sales $2,000,000 Variable costs: Materials $380,000 Order processing 150,000 Billing labor 110,000 Selling expenses 60,000 Total variable costs 700,000 Fixed costs 1,000,000 How much is the unit contribution margin? $6.50 $8.50 $3.50 $1.00 Question 17 4 pts At the...
The service division of Raney Industries reported the following results for 2020. Sales Variable costs Controllable fixed costs Average operating assets $535,000 321,000 101,140 594,000 Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division. 1. Reduce average operating assets by $176,000, with no change in controllable margin. 2. Increase sales $127,710, with no change in the contribution margin percentage. Compute the controllable margin and the return on...
The service division of Raney Industries reported the following results for 2020. Sales $478,000 Variable costs 286,800 Controllable fixed costs 62,400 644,000 Average operating assets Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division. 1. Reduce average operating assets by $128,800, with no change in controllable margin 2. Increase sales $109,480, with no change in the contribution margin percentage Compute the controllable margin and the return on...
Multiple Choice Question 153 At the break-even point, O contribution margin equals total variable costs. O sales equal total fixed costs. O sales equal total variable costs. O contribution margin equals total fixed costs. Click if you would like to Show Work for this question: Open Show Work! Question Atte bice hoice Type here to search
Multiple Choice Question 44 For Sheffield Corp., sales is $700000, variable expenses are $301000, and fixed expenses are $140000. Sheffield's contribution margin ratio is O 37%. O 57%. 43% O 20%. Question Attempts: Multiple Choice Question 44 For Sheffield Corp., sales is $700000, variable expenses are $301000, and fixed expenses are $140000. Sheffield's contribution margin ratio is O 37%. O 57%. 43%. 20% Question Attempts:
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