Purchase Solution

Unit Contribution Margin

Not what you're looking for?

Ask Custom Question

A company that makes organic fertilizer has supplied the following data:

Bags produced and sold 240,000
Sales revenue 1,896,000
Variable manufacturing expense 804,000
Fixed manufacturing expense 520,000
Variable selling and administrative expense 180,000
Fixed selling and administrative expense 270,000
Net operating income 122,000

Reference: 6-7

The company's unit contribution margin is closest to:

3.80
4.55
4.10
7.15

Purchase this Solution
Solution Summary

The solution explains how to calculate unit contribution margin

Purchase this Solution
Free BrainMass Quizzes
Lean your Process

This quiz will help you understand the basic concepts of Lean.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

View More Free Quizzes
Related BrainMass Solutions

  • Contribution Margin and Breakeven Point

    Contribution Margin per Unit = Selling Price per unit - Variable cost per unit Contribution Margin per unit = 50-30 = $20 Contribution margin ratio = Contribution Margin per unit/selling price per unit contribution margin ratio = 20/50 = 0.4 (

  • Maximum Amount of Contribution Margin

    Contribution margin per unit is calculated using the contribution margin per unit divided by the number of hours required per unit.

  • Contribution margin, break-even and margin of safety

    Fixed Cost= $16,800 Contribution Margin per unit Contribution margin per unit = Selling price per unit - variable cost per unit Selling Price= $30 per unit

  • Unit contribution margin

    sold Contribution margin per unit = 4,000,000/1,000,000 = $4 per unit The solution explains how to calculate the unit contribution margin.

  • Cost Volume Profit Analysis

    3.What happens to contribution margin per unit when unit selling prices increase?

  • Unit Contribution Margin for a tile manufacturer

    Calculate the company's unit contribution margin Contribution margin = Sales - Variable expenses Contribution margin = $2,975,000- (1720,000+152,000) = $1,103,000 Unit contribution margin = Contribution margin/no. of boxes =

  • Unit contribution margin, contribution per labor-hour

    all labor-hours are allotted to the product with the highest: unit selling price, unit contribution margin and contribution per labor-hour

  • Net Income

    Answer: Net Income= $450,000 2)      Calculate the Contribution Margin per unit Selling Price= $400 per unit Variable cost= $100 per unit Therefore Contribution margin

  • Break even analysis

    Contribution margin ratio Selling price= $50 per unit Variable cost= $20 per unit Therefore contribution margin per unit= $30 =50-20 Contribution margin ratio= Contribution margin per unit / Selling price

  • Computing the Contribution Margin Ratio

    In this case, Contribution Margin Ratio=(Unit selling price-Unit variable costs)/Unit selling price Contribution Margin Ratio=($20-$6)/$20 Contribution Margin Ratio=$14/$20 Contribution Margin Ratio=.70 or 70 percent.

View More Related Solutions