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
<u>First, we need to calculate the total and unitary variable cost:</u>
Total variable cost= 479,570 + 84,630= $564,200
Unitary variable cost= 564,200 / 260,000= $2.17
<u>Now, the unitary selling price:</u>
Selling price= 1,206,400 / 260,000= $4.64
<u>Finally, the unitary contribution margin:</u>
Unitary contribution margin= 4.64 - 2.17
Unitary contribution margin= $2.47
