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Sagot :
The contribution margin per unit for Krepps was $10.60.
What is contribution margin?
The contribution margin is the revenue that is still available to a business after subtracting all variable costs. It is used to cover the fixed costs to enable the business to earn a profit.
Data and Calculations:
Quantity produced last year =27,120 units
Sales last year = 21,800 units
Products costs for the year:
Direct materials $222,384
Direct labor 124,752
Manufacturing overhead 208,824
Selling & administrative expenses 128,620
Total variable costs $684,580
Fixed manufacturing overhead 461,040
Variable selling and administrative expenses = $128,620
Fixed selling and administrative expenses = $197,976
Computing the Contribution Margin:
Sales for the year = $915,600
Total variable costs (684,580)
Contribution margin $231,020
Sales units 21,800
Contribution margin per unit = $10.60 ($231,020/21,800)
Thus, the contribution margin per unit for Krepps was $10.60.
Learn more about contribution margin at https://brainly.com/question/24309427
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