Asked by Chris Hillman on May 27, 2024
Verified
Materials Corporation sold 12,000 units of its product at a price of $67 per unit.Total variable cost per unit is $54.94,consisting of $45.05 in variable production cost and $9.89 in variable selling and administrative cost.Compute the total contribution margin.
Contribution Margin
The amount remaining from sales revenue after variable expenses have been deducted.
Variable Cost
A cost that changes in proportion to the level of activity or volume of production in a business.
- Execute calculations and assessments of manufacturing margin, contribution margin, and gross margin for making informed decisions.
Verified Answer
BM
Learning Objectives
- Execute calculations and assessments of manufacturing margin, contribution margin, and gross margin for making informed decisions.