Question

A cement manufacturer has supplied the following data: Tons of cement produced and sold 260,000 Sales revenue $ 1,206,400 Variable manufacturing expense $ 479,570 Fixed manufacturing expense $ 289,700 Variable selling and administrative expense $ 84,630 Fixed selling and administrative expense $ 228,800 Net operating income $ 123,700 What is the company's unit contribution margin? (Do not round your intermediate calculations.)

Answer 1

A margin of 2.47 in the end

Answer 2

Answer:

Unitary contribution margin= $2.47

Explanation:

Giving the following information:

Tons of cement produced and sold 260,000

Sales revenue $ 1,206,400

Variable manufacturing expense $ 479,570

Variable selling and administrative expense $ 84,630

First, we need to calculate the total and unitary variable cost:

Total variable cost= 479,570 + 84,630= $564,200

Unitary variable cost= 564,200 / 260,000= $2.17

Now, the unitary selling price:

Selling price= 1,206,400 / 260,000= $4.64

Finally, the unitary contribution margin:

Unitary contribution margin= 4.64 - 2.17

Unitary contribution margin= $2.47