Answer:
d. $22.75
Explanation:
We know that
Contribution margin per unit = Selling price per unit - Variable expense per unit
where,
Selling price per unit is $35
And, the contribution margin is 35%
So, the Contribution margin per unit would be
= Selling price per unit × contribution margin
= $35 × 35%
= $12.25
Now after finding out the contribution margin per unit, the variable cost per unit would be
= $35 - $12.25
= $22.75
And, the direct material and labor cost is a variable cost
Answer: Meeting customer requirements at a profit
Answer:
Effective capacity= 500 units
Explanation:
Effective capacity is defined as the maximum amount of product a manufacturing process can complete in a given period. Considering constraints such as delays, quality problems, and material handling.
Effective capacity is dependent on the design of the system. Design capacity is defined as the theoretical capacity of a system based on its design.
Effective capacity is calculated by dividing the actual capacity by efficiency.
Effective capacity= Actual Capacity/ Efficiency
Effective capacity= 400/0.8
Effective capacity= 500 units
