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marin [14]
3 years ago
12

Duck Company produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs ar

e $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A selling commission of 15% of the selling price is paid on each unit sold. The contribution margin per unit is:Multiple Choice$22$16$7$17
Business
1 answer:
andrey2020 [161]3 years ago
3 0

Answer:

Contribution margin = $16

Explanation:

Contribution is the difference between the selling price and the variable cost.

Contribution margin = (Sales - variable cost )

Variable cost = Variable manufacturing + Variable selling cost

Variable cost = 18 + (15%× 40) = 24

Contribution margin = 40 - 24 =  $16

Contribution margin = $16

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Hello Friend, I've done my personal research, and I apologize if the answer is incorrect.

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3 years ago
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Answer:

Explanation:

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