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expeople1 [14]
3 years ago
5

Jones Company sells an average of 200 chairs per week, of which 30% are regular chairs and 70% are executive chairs. Regular cha

irs sell for $100 each and incur variable costs of $62. Executive chairs sell for $170 each and incur variable costs of $125. The contribution margin per unit and total contribution margin for regular chairs is:
Business
1 answer:
MissTica3 years ago
7 0

Answer:

Contribution margin per unit: $42.9

Total contribution margin: $8,580

Explanation:

The contribution margin per unit is calculated by calculating the total contribution margin, which is basically the total sales, minus the costs of production, in this cae we have that we sold:

60 regular chairs

140 executive charis

Now the total in sales is:

Regular sales: $6,000

Executive chairs: $23,800

The variable cost of each is:

Regular chairs: $3720

Executive chairs: $17,500

We add up the sales and withdraw from it the total variable cost:

29,800-21,220=8,850

The total contribution margin is equal to $8850.

And the contribution margin per unit is given by dividing the total contribution margin by the number of units sold:

8850/200=  42.9

So the contribution margin per unit is 42.9 dollars.

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Recording sales, returns, and discounts taken LO P2 Prepare journal entries to record each of the following sales transactions o
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Answer:

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Perpetual method of inventory keeps a record of cost of inventory after every sale.

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The income statement for the year 2018 of Fugazi Co. contains the following information: Revenues $70000 Expenses: Salaries and
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Explanation:

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You are considering adding a microbrewery on to one of your firm's existing restaurants. This will entail an increase in invento
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