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Elena L [17]
4 years ago
15

Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its aver

age costs per unit are as follows:Average cost per unitDirect Materials $4.85Direct Labor $4.70Variable manufacturing overhead $1.65Fixed manufacturing overhead $10.00Fixed selling expense $3.45Fixed administrative expense $1.50Sales commissions $0.60Variable administrative expense $0.55If the selling price is $27.00 per unit, the contribution margin per unit sold is closest to:A: $17.45B: $0.30C: $14.65D: $5.80
Business
1 answer:
Fiesta28 [93]4 years ago
7 0

Answer:

Contribution margin per unit= $15.8

Explanation:

Giving the following information:

Direct Materials $4.85

Direct Labor $4.70

Variable manufacturing overhead $1.65

Selling price= $27

The contribution margin per unit is calculated by deducting from the selling price the direct material, direct labor, and variable overhead:

Contribution margin per unit= 27 - 4.85 - 4.7 - 1.65= $15.8

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