A division sold 250000 calculators during 2020: Sales $2500000 Variable costs: Materials $475000 Order processing 187500 Billing labor 137500 Selling expenses 75000 Total variable costs 875000 Fixed costs 1000000 How much is the unit contribution margin? $1.00 $3.50 $7.50 $6.50

A division sold 250000 calculators during 2020: Sales $2500000 Variable costs: Materials $475000 Order processing 187500 Billing labor 137500 Selling expenses 75000 Total variable costs 875000 Fixed costs 1000000 How much is the unit contribution margin? $1.00 $3.50 $7.50 $6.50

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 16MCQ: Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000...

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Question

A division sold 250000 calculators during 2020:

Sales		$2500000
Variable costs:
Materials	$475000
Order processing	187500
Billing labor	137500
Selling expenses	75000
Total variable costs	875000
Fixed costs		1000000

How much is the unit contribution margin?

$1.00

$3.50

$7.50

$6.50

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