Ask Question
12 July, 03:45

Harris corporation produces a single product. last year, harris manufactured 27,970 units and sold 22,200 units. production costs for the year were as follows: fixed manufacturing overhead $335,640 variable manufacturing overhead $240,542 direct labor $131,459 direct materials $234,948 sales were $1,043,400, for the year, variable selling and administrative expenses were $113,220, and fixed selling and administrative expenses were $198,587. there was no beginning inventory. assume that direct labor is a variable cost. the contribution margin per unit would be: (do not round intermediate calculations.) $21.30 per unit $20.20 per unit $25.30 per unit $15.70 per unit

+1
Answers (1)
  1. 12 July, 05:03
    0
    The Contribution Margin per unit (CM) can be calculated from the difference of Selling Price per unit (SP) and Total Expenses per unit (TE).

    First, let’s calculate the value of SP:

    SP = Sales / Units sold

    SP = $1,043,400 / 22,200 units sold

    SP = $47

    Second, calculate all expenses:

    Direct materials per unit = $234,948 / 27,970 units manufactured = $8.4

    Direct labor per unit = $131,459 / 27,970 units manufactured = $4.7

    Variable manufacturing overhead per unit = $240,542 / 27,970 units manufactured = $8.6

    Variable selling expenses per unit = $113,220 / 22,200 units sold = $5.1

    TE = $26.8

    Therefore the CM is:

    CM = SP - TE

    CM = $47 - $26.8

    CM = $20.2 per unit
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Harris corporation produces a single product. last year, harris manufactured 27,970 units and sold 22,200 units. production costs for the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers