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bogdanovich [222]
3 years ago
5

Accurate Metal Company sold 39,000 units of its product at a price of $390 per unit. Total variable cost per unit is $196, consi

sting of $187 in variable production cost and $9 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.
Business
1 answer:
jarptica [38.1K]3 years ago
4 0

Answer:

Manufacturing margin = 7566000

Explanation:

given data

sold = 39,000 units

price = $390 per unit

Total variable cost  = $196 per unit

variable production = $187

variable selling and administrative cost = $9

solution

first we get here the sales revenue that will be

sales revenue = 39000 × 390

sales revenue = 15210000

and

Cogs = 39000 × 196 = 7644000

so here Manufacturing margin will be

Manufacturing margin = 15210000 - 7644000

Manufacturing margin = 7566000

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