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3 years ago

A cement manufacturer has supplied the following data:

Business

1 answer:

atroni [7]3 years ago

5 0

Answer:

Unitary contribution margin= $2.2

Explanation:

Giving the following information:

Tons of cement produced and sold 240,000

Sales revenue $1,008,000

Variable manufacturing expense $439,000

Variable selling and administrative expense $41,000

First, we need to calculate the total contribution margin:

Total contribution margin= 1,008,000 - 439,000 - 41,000

Total contribution margin= $528,000

Now, the unitary contribution margin:

unitary contribution margin= 528,000/240,000

unitary contribution margin= $2.2

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