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Sagot :
The throughput margin is $150.
What is the throughput margin?
- Margin throughput is an accounting phrase related to contribution margin that is used to measure the number of profits obtained throughout the production cycle, with a focus on variable costs and revenue rather than fixed costs, which change so frequently that any set figure is mostly arbitrary.
- To determine throughput margin, remove totally variable costs from revenue.
To find the throughput margin:
- = Revenue - variable cost
- = $160 - $10
- = $150
Therefore, the throughput margin is $150.
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The correct question is given below:
A product is sold for $ 160. Its cost consists of $ 10 of direct materials, $ 25 of direct labor, and $ 15 of manufacturing overhead. What is the throughput margin?
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