Compute the company's contribution margin per unit


label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

At its $34 selling price, Pacific Company has sales of $17,000, variable manufacturing costs of $6,000, fixed manufacturing costs of $1,000, variable selling and administrative costs of $2,000 and fixed selling and administrative costs of $1,000. What is the company's contribution margin per unit?
Oct 5th, 2015

Thank you for the opportunity to help you with your question!

Contribution Margin per unit = 9,000/500 = $18


Working:

Number of Units = 17000/34 = 500 units 

Total Revenue = $17,000

Total Variable Cost = $6,000 + $2,000 = $8,000

Total Contribution Margin = $17,000 - $8,000 = $9,000


Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 5th, 2015

Hello, please let me know if you needed help again. Good luck.

Oct 5th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Oct 5th, 2015
...
Oct 5th, 2015
Nov 21st, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer