Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Get expert answers to your questions quickly and accurately from our dedicated community of professionals. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.
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
We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.