Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Direct materials $ 31 per unit
Fixed manufacturing overhead costs $ 225,000
Sales price $ 205 per unit
Variable manufacturing overhead $20 per unit
Direct labor $ 34 per unit
Fixed marketing and administrative costs $ 200,000
Units produced and sold 6,000
Variable marketing and administrative costs $ 8
A) Total variable cost per unit= direct material + direct labor + variable overhead + variable marketing and administrative
Total variable cost per unit= 31 + 34 + 20 + 8= $93
B) Variable manufacturing cost= direct material + direct labor + variable overhead= 31 + 34 + 20= $85
C) Total absorption cost per unit= direct material + direct labor + total overhead= 31 + 34 + (225,000/6,000 + 20)= $122.5
D) Total unitary cost= total cost/ Q
Total unitary cost= total variable cost + (fixed overhead + Fixed marketing and administrative costs) /Q= 93 + (225,000 + 200,000)/6,000= $163.83
E) Profit margin= selling price - total unitary cost= 205 - 163.83= $41.17
F) Gross margin= selling price - unitary cost(absorption)
Gross margin= 205 - 122.5= $82.5
G) Contribution margin per unit= selling price - unitary variable cost
CM per unit= 205 - 85= $120
