1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
serious [3.7K]
3 years ago
9

A steel company manufactures heavy-duty brackets for the shelving industry. The company has budgeted for the production and sale

of 1,000,000 brackets and has no beginning or ending inventory. Relevant operational, revenue, and cost data is as follows: Unit selling price of a bracket $22.50 Direct material required per unit 4 pounds Direct labor required per unit 0.15 hours Cost of material per pound $1.75 Direct labor cost per hour $9.00 Total variable selling costs $2,250,000 Total fixed costs $1,500,000 Based on the data provided, what is the unit contribution margin per bracket
Business
1 answer:
alexandr402 [8]3 years ago
4 0

Answer:

Contribution margin per unit = $11.90

Explanation:

Given:

Total unit sale = 1,000,000

Unit selling price of a bracket = $22.50

Direct material required = 4 pounds per unit  

Direct labor required = 0.15 hours per unit

Cost of material per pound = $1.75

Direct labor cost per hour = $9.00

Total variable selling cost = $2,250,000

Find:

Contribution margin per unit = ?

Computation:

Direct material per unit = 4 pounds per unit × $1.75

Direct material per unit = $7

Direct labor per unit = 0.15 hours per unit × $9.00

Direct labor per unit = $1.35

Variable selling cost per unit = Total variable selling cost / Total unit sale

Variable selling cost per unit = $2,250,000 / 1,000,000

Variable selling cost per unit = $2.25

Contribution margin per unit = Sales per unit - Variable cost per unit

Contribution margin per unit = Sales per unit - [Direct material per unit + Direct labor per unit + Variable selling cost per unit]

Contribution margin per unit = $22.50 - [$7 - $1.35 - $2.25]

Contribution margin per unit = $22.50 - [$10.6]

Contribution margin per unit = $11.90

You might be interested in
What is the best sequence for creating business organization?
Mariana [72]

Answer:

Know and be able to differentiate among the four types of organizational structure.

Understand why a change in structure may be needed.

4 0
3 years ago
Read 2 more answers
Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of
Ksju [112]

Answer:

The equivalent units of production for conversion cost would be $11,680 units

Explanation:

The computation of the equivalent unit of conversion is shown below:

= (Beginning inventory units × remaining percentage)  + (units started and  completed units × completed percentage) + (ending inventory units × completed percentage)

= (6,800 units × 25%) + (6,500 units × 100%)  + (5,800 units × 60%)

= 1,700 units + 6,500 units + $3,480 units

= $11,680 units

6 0
3 years ago
A state passes a law requiring major appliances sold in the state to meet energy consumption standards. which factor in the​ fir
german
<span>This best reflects the broader regulatory environment in which the firm operates. Changes in this environment will undoubtedly have effects on the firms future product offerings and bottom line.</span>
4 0
3 years ago
At the beginning of December, Global Corporation had $2,100 in supplies on hand. During the month, supplies purchased amounted t
kifflom [539]

Answer:

DR Supplies expense $2,800

CR Supplies  $2,800

Explanation:

Opening Balance      $2,100

Add Purchases         $3,500

Total                           $5,600

Closing Balance        $2,800

To determine usage for the month

=Total  supplies - Closing Balance of Supplies

= $5,600 - $2,800

= $2,800

Usage for the month = $2,800

DR Supplies expense $2,800

CR Supplies  $2,800

6 0
3 years ago
Read 2 more answers
Jose wants to upgrade his look before a job interview. A friend tells him about a men's clothing line that allows potential cust
AlladinOne [14]

Answer:

D. Experience

Explanation:

Based on the information provided within the question it can be said that this scenario best describes the 4E framework objective known as experience. This is the objective of helping customers experience the company's product, either directly or indirectly. Which is what the clothing line in this scenario is doing by allowing it's customers to virtually experience the product by seeing how it would look on them through a computer program.

6 0
3 years ago
Read 2 more answers
Other questions:
  • Portfolio standard deviation and diversification: You are asked to give financial advice to a mutual fund manager. The fund has
    10·1 answer
  • Bolt Corp. dismissed Ace as its general sales agent and notified all of Ace’s known customers by letter. Young Corp., a retail o
    7·1 answer
  • _____ media are specifically designed to help bring customers eyeball to eyeball with the product--often at the point of sale or
    13·1 answer
  • Given the accelerated pace of technological change, in combination with deregulation, globalization, and demographic shifts, a f
    13·1 answer
  • Stella is a volunteer at her church during bingo night. At the end of the night, it is her responsibility to take the evening's
    11·1 answer
  • Anson Jackson Court Company (AJC) The Anson Jackson Court Company (AJC) currently has $200,000 market value (and book value) of
    13·1 answer
  • On January 14, at the end of the second week of the year, the totals of Castle Company's payroll register showed that its store
    11·1 answer
  • PLEASE HELPP WITH CHEMISTRY
    14·1 answer
  • If a tax is levied on the sellers of a product, then the demand curve will a. become flatter. b. not shift. c. shift up. d. shif
    14·1 answer
  • The united states maintained its military superiority with a defense budget larger than the next __________ biggest military pow
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!