Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit Direct materials $ 6.90 Direct labor $ 4.40 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 3.90 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 Foundational 1-13 (Algo) 13. If the selling price is $22.90 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit Direct materials $ 6.90 Direct labor $ 4.40 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 3.90 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 Foundational 1-13 (Algo) 13. If the selling price is $22.90 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Foundational 15 (Algo) [LO1-1, LO1-2, LO1-3, LO1-4, LO1-5, LO1-6]
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Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:
| Average Cost Per Unit | |
|---|---|
| Direct materials | $ 6.90 |
| Direct labor | $ 4.40 |
| Variable manufacturing |
$ 1.50 |
| Fixed manufacturing overhead | $ 4.00 |
| Fixed selling expense | $ 3.90 |
| Fixed administrative expense | $ 2.00 |
| Sales commissions | $ 1.00 |
| Variable administrative expense | $ 0.50 |
Foundational 1-13 (Algo)
13. If the selling price is $22.90 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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