34. Browne Inc. produces a single product. During the past year, Browne manufact
ID: 2347953 • Letter: 3
Question
34. Browne Inc. produces a single product. During the past year, Browne manufactured 25,000 units and sold 20,000 units. Production costs for the year were as follows:
Sales totaled $850,000, variable selling expenses totaled $110,000, and fixed selling and administrative expenses totaled $170,000. There were no units in beginning inventory. Assume that direct labor is a variable cost.
The contribution margin per unit would be:
34. Browne Inc. produces a single product. During the past year, Browne manufactured 25,000 units and sold 20,000 units. Production costs for the year were as follows: Sales totaled $850,000, variable selling expenses totaled $110,000, and fixed selling and administrative expenses totaled $170,000. There were no units in beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit would be:Explanation / Answer
$20,000