A cement manufacturer has supplied the following data:
Tons of cement produced and sold 240,000
Sales revenue $1,008,000
Variable manufacturing expense $439,000
Fixed manufacturing expense $236,000
Variable selling and administrative expense $41,000
Fixed selling and administrative expense $226,000
Net operating income $66,000
What is the company's unit contribution margin?
a. $4.20 per unit.b. $0.22 per unit.c. $2.20 per unit.d. $2.00 per unit.

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facundobuzzetti facundobuzzetti · Answer 1 · 2020-10-21T16:24:59+02:00

Answer:

Unitary contribution margin= $2.2

Explanation:

Giving the following information:

Tons of cement produced and sold 240,000

Sales revenue $1,008,000

Variable manufacturing expense $439,000

Variable selling and administrative expense $41,000

First, we need to calculate the total contribution margin:

Total contribution margin= 1,008,000 - 439,000 - 41,000

Total contribution margin= $528,000

Now, the unitary contribution margin:

unitary contribution margin= 528,000/240,000

unitary contribution margin= $2.2